- We await the likely passing of the Irish Budget later this afternoon (Europe time)
- ECB’s Stark: Rejects E-Bond idea
- UK Nov Manufacturing Prod +0.60% , Nov Ind Production -0.20%
- Portugese Treasury Secretary was vociferously defending the Portugese position
- EU Finance Ministers formally approve aid package for Ireland – a good thing as the Irish Parliament are voting on it !
- German October Factory Orders +1.60%, lower tha expectation of 1.90%
- Bloomberg reports EU Rules Out Immediate Aid Boost, Banks on ECB to Fight Crisis
The European session saw early selling of EUR with a possible worry that the Irish Budget may cause some unexpected concerns. However that was short-lived as a reversal into risk trades and an undercurrent of firm equities took to the stage. Cable was notably firm shrugging off mixed data – seeing strong buying to continue a trend from Asia from real money accounts and latterly boosted by Clearer buying.
The Euro approached 1.3400 (high at 1.3394) prior to a somewhat lower-than-expecation German Factory Orders number; however the currency has held well since as we go into the US session .
AUD has similarly broken through offers and while it has not yet broken cleanly through 0.9965 it seems it is only a matter of time before a further test of parity. Note large sell orders ahead which may delay or cause retracement.
USD/JPY has rebounded well from attempts in the Asian session to push down through reportedly large stops at 82.40. It trades at 82.60 and has been supported by cross buying in EUR and AUD.
Current levels: EUR/USD 1.3364 EUR/JPY 110.38 CABLE 1.5778 AUD/USD 0.9960 AUD/JPY 82.26 USD/JPY 82.40 USD/CHF 0.9775