- Full text: Euro summit statement on Greek hard restructuring - creditwritedowns.com
- IIF’s Dallara: Pleased with outcome of summit with voluntary 50% discount on Greek debt
- ISDA lawyer: Deal on deeper Greek bondholder losses unlikely to trigger CDS while participation still voluntary
- Greek PM will make address to nation at 17:00 GMT
- ECB buying Italian bonds in secondary market
- BOE’s Fisher: Significant chance of UK double-dip recession – Bloomberg TV
- BOJ expands stimulus as EU crisis boosts yen – Bloomberg
- Japan FinMin: BOJ easing was appropriate decision
- Euro zone September M3 annual growth 3.1%. stronger than Reuters’ median forecast of 2.9%. M3 moving average July-Sept 2.6%, in line with median forecasts
- Euro zone October business climate -0.18, in line with Reuters’ median forecast of -0.2%
- UK Oct CBI retail sales -11 vs -15 in September, better than Reuters’ median forecast -15
European stocks, oil, US treasury yields all firmer against the risk-on backdrop. But when all said and done it’s been pretty quiet on the forex front (AUD/USD and NZD/USD I guess exceptions)
EUR/USD up at 1.4025 from early 1.3985, having been as high as 1.4037. Well-documented barrier option interest at 1.4000 was taken out early. Stops just above there and through 1.4020 duly tripped and we got to 1.4037. BIS and real money names notable sellers above 1.4000 and they have helped cap things for the time being.
Next barrier option interest up at 1.4050.
Cable pretty much unchanged at 1.6005. As we’ve mentioned past two days, sell orders layered from 1.6020 thru 1.6060 and they’re proving sticky for the cable bulls. The latest rally got as high as 1.6034 before floundering (1.6035 is the 100 dma)
USD/JPY down at 75.80 from early 76.00, the latest BOJ easing measures having done nothing to weaken the yen. Talk of fairly-decent buy orders down at 75.70/75 and they’re lending tenuous support so far.
AUD/USD as mentioned above has seen decent gains, up at 1.0625 from early 1.0500, aussie major beneficiary of risk on backdrop. Decent sell orders noted lying in wait up at 1.0660/70.
USD/CHF down at .8735 from early .8775. EUR/CHF marginally easier at 1.2255 from early 1.2280, failing to benefit from risk-on backdrop. Much talk of barrier option interest in the cross up at 1.2300. Probably helps explain things a little.