- Moody’s reviews for downgrade Unicredit’s A2/C ratings
- Unicredit CEO in meeting with ECB – Source close to bank
- BOJ’s Shirakawa: Markets remain under strain as seen in spike in Italy bond yields
- ECB buys Italian, Spanish bonds
- ECB’s Mersch: New Italian govt big step forward, but…..
- EU’s Juncker: Aim to finish work on EFSF leverage by end of November
- Buba’s Boehmler: Welcomes private sector participation in Greece
- Finnish FinMin: There is mistrust between euro countries
- Greek Conservative Leader Samaras: Elections in 3 months necessary for social peace
- China govt will be in touch with relevant parties on EU aid – Dow Jones
- China Central Bank: Sees no quick end to European debt crisis
- Euro zone October new car registrations -3.7% m/m, -2.1% y/y
- UK October jobless claims 5.3k, better than median forecast +20k. But Ilo jobless +129k in 3 months to September, rate 8.3% worse than median forecast of 8.2%.
- BOE’s King: UK market has taken a turn for the worse since August
- BOE’s King: Impossible to say how long adjustments will take to euro zone imbalances
- UK business secretary Cable: UK should not sign up to tobin tax. Up to euro zone if they want to go it alone. German position on tobin tax “completely unjustified”
- EU October HICP +0.3% m/m, +3.0% y/y, core +1.6% y/y, all as expected
Active morning. EUR/USD marginally firmer at 1.3480 from early 1.3445. Inbetween though we’ve been as low as 1.3429 and as high as 1.3558 in choppy trade.
News that Moody’s is reviewing Unicredit for possible downgrade put the single currency under some early pressure. But as European stocks rallied and periphery/German bond spreads narrowed, so EUR/USD mounted a strong rally.
Middle Eastern buying (shock horror) was notable in the early stages of the rally. Sell orders noted up at 1.3490/00 proved sticky for awhile, but eventually trailing buy stops were tripped through 1.3500 and we quickly reached 1.3558.
Real money entered the fray as notable sellers above 1.3540 and we were soon headed lower again. Reports Unicredit CEO is in talks with ECB certainly didn’t help matters. Model funds also notable sellers on the way back down.
Talk of barrier option interest lined up down at 1.3425 and 1.3400, sell stops below there.
Cable touch firmer at 1.5675 from early 1.5760. Ongoing Middle Eastern sovereign buying has been a notable feature today.
EUR/GBP up at .8543 from early .8528, having been as high as .8584 at one stage. UK clearer with strong Asian ties decent buyer of the cross this morning.
USD/JPY effectively unchanged at 76.93.
USD/CAD slightly lower at 1.0255 from early 1.0280. Much talk of 1.0300 barrier option interest in place.