- US lawmakers must do more on debt levels – IMF
- Italy PM Monti says bond spread has fallen due to a return of foreign, Italian investor faith in Italy, says hopes trend continues
- German December sa jobless total +3k, better than Reuter’s median forecast of +10k. Jobless rate unchaged at 6.9%, as expected
- Spain December jobless down -1.2% m/m, by 59,094 people. Total hits 4.8 mln
- Swiss December KOF growth indicator falls to 1.28 from 1.50 in November, third consecutive month of decline and weaker than Bloomberg’s median forecast of 1.40
- Swiss December PMI rises to 49.5 in December, up from 48.5 in November. Stronger than median forecast of unchanged 48.5
- UK December construction PMI 48.7, weaker than Reuter’s median forecast of 49.5 and lowest read since last June
- UK economy – I want to turn bullish, but I can’t see where growth is going to come from – Roger Bootle in The Telegraph (I can’t see where it’s going to come from either)
- Portugal warns EU-IMF troika to back off on austerity demands - AEP at The Telegraph
- Happy New Year Germany: Greece needs a new bailout - Zerohedge
I mentioned right at the start of the day the choppy price action which greeted the early days of 2013, with market players very quick to book profits and take losses. Well we appear to be seeing a rerun; deju vu all over again so to speak.
EUR/USD is a little lower at 1.3117 compared to the 1.3138 which greeted me. Inbetween however we’ve been as high at 1.3170 and then as low as 1.3094. Early ACB and real money demand helped the single currency tick higher and the rally extended on the release of better than expected German jobs data (although it wasn’t that different from the median forecast/see above)
Sell orders were reportedly clustered up at 1.3180/00 and it wasn’t overly surprising to see the pairing top out at 1.3170. Then as European stocks saw accelerated losses, so the euro came under fairly severe pressure. The speed of the fall from grace was a little surprising and accelerated when sell stops were tripped through 1.3120.
Buy orders were reported clustered down at 1.3090/00 and they provided support. I think, but can’t confirm, that there’ll be further sell stops through 1.3090 (1.3092 is daily kijun line)
USD/JPY down at 86.95 from early 87.25 as risk appetite diminishes. I’m hoping for an early test of 86.65 so I can get yet another Forexlive poll correct
