- Japan FinMin Kan: Markets decide forex rates for themselves
- ECB’s Nowotny: Need to change exchange rate policies in China. Re euro strength, “one has to observe this very carefully”
- German Gfk February consumer sentiment indicator 3.2, down from upwardly revised 3.4 in January, slightly above median forecast 3.1
- Shanghai share index ends down 1.1%, 1-month closing low
- Greek FinMin: Greece categorically will not leave the euro. Greece will conquer budget problems on own, expect no help from outside
- Euro zone November industrial orders revised upward, to +2.7% m/m, -0.5% y/y from previous +1.6%, -1.5% respectively
- Greece opens book for 5-yr euro benchmark syndicated bond. Strong demand seen
- German EconMin Bruederle: Government prepared to act if financing problems grow
When all said and done not one of the more memorable European trading sessions. JPY and USD have given a little ground as risk appetite has perked up a touch, European stocks rallying back throughout the morning, gold and oil firmer. Evident relief that the Greek syndicated 5-year bond has been well-received.
EUR/USD started around 1.4160 and dipped initially to session low 1.4129 before rallying strongly to a session high 1.4197. We’ve settled back to 1.4185 at writing. Recovering European stocks, upwardly revised euro zone industrial orders for November, and the well received 5-year Greek bond issue, are some of the factors helping fuel the rally.
Talk now of sell orders at 1.4200 upto 1.4220, stops just above there.
Cable up at 1.6165 from an early 1.6110, having been as high as 1.6174 when stops were tripped through 1.6160.
Cable got a good early lift from decent selling of the EUR/GBP cross which fell from an early .8785 to test technical support at .8750, a UK clearer and German fund seen notable sellers. As news has filtered out about the encouraging Greek bond take up the cross has rallied back almost to where it started out, presently at .8775.
USD/JPY marginally firmer, presently at 90.30 from early 90.15, with yen giving ground across the board against the backdrop of slightly improving risk appetite.
AUD/USD up 15 or so points, presently at .9070.
Disclosure: "No positions"