- Shanghai stock index ends down hefty 3.9%, one month low. Jitters surrounding further PBOC monetary tightening
- S.Korea fx authorities spotted buying dollars to check won’s strength – Dealers
- Dudley tells CNBC Fed critics don’t “understand” exit strategy
- Ireland’s Europe Minister: No reason why Ireland should trigger EU or IMF bailout
- Ireland’s Cowen to weigh EU steps to shore up bank system – Bloomberg
- German EconMin Bruederle: It’s up to Ireland to take decision on EU aid, but does not think it is needed
- ECB’s Constancio: No necessary link between Ireland taking any aid and Portugal
- UK October CPI +0.3% m/m, +3.2% y/y, above median forecasts +0.2%, +3.1% respectively. Highest y/y rate since June. Data gives cable/sterling lift which doesn’t last long
- BOE’s King in letter to UK govt: MPC ready to adjust policy in either direction. CPI likely to remain above target for next year, but montary policy affects prices with a lag. Spare capacity will continue to put downward pressure on CPI
- German November ZEW: Economic sentiment +1.8%, much stronger than median forecast of -7.0
- CEBS’s Carosio: Preparations for next EU banks’ stress test underway. Results due next June
- Japan FinMin Noda: To take decisive steps on forex, including intervention when necessary
Risk aversion has picked up (Stoxx 50 down -1.25%, oil off a buck, US treasury yields little lower), but it hasn’t had a huge effect on forex rates when all said and done.
EUR/USD sits at 1.3620, slightly easier from early 1.3635. Much stronger than expected German ZEW data has lent some much-needed support. Buy orders down at 1.3550/70, stops below there. On topside, sell orders layered 1.3660 up through 1.3700. Basically we’re seeing consolidation after recent sell-off.
Cable at 1.6010, down from early 1.6070 having been as low as 1.5982. Talk of buy orders 1.5950/70, so guess there could well be 1.5950 barrier option interest. Decent sell stops said to lie just below there.
UK clearer notable seller this morning. Russia on the otherhand seen notable buyer on the way down. Probably profit-taking after selling lots in high 1.60’s/low 1.61’s yesterday.
USD/JPY up marginally at 83.10 from early 82.95. Stops seen gathering through 83.35.
AUD/USD down at .9825 from early .9875, aussie not helped by sharp sell-off in Shanghai share index and concerns over further China monetary tightening. Reports decent buy orders down at .9785.