- Shanghai share index up 0.4%
- IMF Europe Chief Belka says fiscal, monetary stimulative policies should continue as economic recovery fragile
- ECB says to stop conducting one-week swiss franc swap operations after Jan 31 2010. Decision made against backdrop of declining demand, improved funding market conditions
- French EconMin Lagarde: Expects 2010 French growth to hit 1.4%, up from 0.75% previously
- BUBA monthly report: German recovery could have continued in Q4, but at weaker pace. Recovery process remains intact, given export expectations, new orders
- Qatar Energy Minister: Crude oil between $70-80 is “very reasonable”. Crude above $80 would be a concern
Not too much net change this morning. There was a dearth of news for the market to key off, and the Martin Luther King holiday in the States will have helped subdue interest.
EUR/USD sits at 1.4375 effectively unchanged on the day. An early rally ran into BIS selling up at 1.4390/95 and that was that. Overnight there were reports China bought down at 1.4335/40. Sell orders seen up at 1.4400, stops through 1.4420.
Cable is up at 1.6345 from early 1.6305, but someways from session high 1.6378 which was reached when stops tripped through 1.6365. Sterling has had a good day EUR/GBP down at .8795 from early .8815. UBS have put out EUR/GBP sell recommendation, target .8600, stop .8930.
Sterling is being underpinned by among other things, stronger than expected Nationwide house price data, speculation BOE will suspend QE at next months meeting, anticipation of positive M&A flows (Kraft/Hershey after Cadbury, France’s GDF Suez after UK’s International Power.)
Talk of decent-sized 1.6340 option expiry.
USD/JPY down slightly at 90.75 from early 90.95. Talk of buy orders down at 90.50/70, stops below 90.50 and then decent stops below 90.30. Japanese exporter sell orders layered at 91.20 up through 91.50.