- ECB’s Nowotny: Euro exchange rate isn’t a matter of major concern
- ECB’s Nowotny: Doesn’t see longer-term euro increase versus US dollar
- Germany’s Economy Minister says cannot say the euro is overvalued
- ECB’s Praet: ECB has no exchange-rate target – La Libre
- ECB’s Nowotny: Sees stabilization in the eurozone
- Spanish PM Rajoy: Spanish exports posting best results in 40 years. Doubts over euro are history – Expansion
- Japan FinMin Aso: Will aim to beat prolonged strong yen, end deflation. Weaker yen, rising stocks reflect market hopes for Abe
- EU new car registrations fall -16.3% in December
- Eurozone December inflation +0.4% m/m, +2.2% y/y, pretty much in line with median forecasts +0.3%, +2.2% respecively
- Swiss retail sales up +2.9% y/y in November
- Italian November world trade surplus 2.363 bln
EUR/USD up at 1.3320 from early 1.3285 having been as low as 1.3262 at one stage. Talk had buy orders clustered down at 1.3240/60 and they came within an ace of being tested early. Then with the pairing sitting meekly around 1.3270 things livened up big-time as comment from ECB’s Nowotny hit the wires. The official opined that the euro exchange rate isn’t a matter of major concern and EUR/USD was back over 1.3300 in the blink of an eye making it as high as 1.3325.
Early reports had sell stops through 1.3240 and buy stops through 1.3330.
Cable little changed on the day, presently at 1.6045 from the 1.6055 which greeted me. That doesn’t tell the whole story, not by a long chalk. Strong early pressure saw sell stops through 1.6020 tripped on the way to session low 1.6005. Reports had middle eastern sovereign buying emerging at the lows and so started the gradual recovery.
Talk of barrier option interest now lined up down at 1.5990 (interesting), sell stops gathered below there.
USD/JPY touch firmer at 88.20 from early 88.00, garnering some underpinning when Nowotny triggered sharp rally in the EUR/JPY cross. The cross is up at 117.55 from early 116.95, having recovered from session low 116.47.
