Forex trading headlines from the European morning session 11 December
- German final CPI Nov m/m +0.2% as exp/prev y/y+1.3 as exp/prev
- French c/a deficit Oct EUR -2.1 bln vs -3.6 bln prev
- Italy’s PM Letta aiming for 1% growth in 2013
- ECB’s Nowtony says EZ break-up no longer priced in
- Greek Sept unemployment rises to 27.4% vs 27.3% prev
- EU talks look at instrument exclusions from FTT
- Germany’s Kothe says she’s happy with outcome of fin min meeting
- Indian trade deficit shrinks to USD 9.22 bln in Nov
- RBI’s Rajan says no room for complacency on rupee
- IEA raises forecasts for global oil demand
- Nikkei closes down 0.62% at 15,515.06
- Shanghai comp index closes down 1.49% at 2204.17
Main story of the morning has been the profit-taking on short yen possies with GBPJPY leading the way down closely followed by the aussie $.
A weaker Nikkei was enough to cap any rally on USDJPY or the crosses and that signalled a yen buying spree that saw USDJPY fall to test 102.40 support but more importantly triggered a sell-off in other pairs too.
GBPUSD has been down to 1.6375 which in turn has driven EURGBP back up through strong sell interest at 0.8400 and we’ve seen pound weakness across the board as GBPJPY continues south to 167.82 so far
EURUSD fell to 1.3740 but has since rallied back to 1.3770 as EURJPY finds bids below 141.00 and EURGBP makes its move higher.
AUDUSD was also a casualty of the AUDJPY selling and has so far held support at 0.9100 but with very little attempt at a rally. Similar story for the kiwi.
EURCHF has survived another look at the 1.2200 barrier and been back to 1.2229 only to fall back below 1.2210 where more demand has once again lifted it, unconvincingly, to 1.2219 as I type.
All delicately poised still and it’s getting thinner and thinner out there so we can expect more fun and games as the day progresses.
I’m out of here though as I have an important meeting in London to attend, so you’re in Ryan’s extremely capable hands.
See you all again tomorrow and good luck out there.