European morning wrap: Market awaits U.S. fiscal cliff developments

Japan PM Abe economic adviser Hamada:  BOJ should buy more long-dated JGBs and risk assets. BOJ buying foreign bonds could be a policy option Dear Harry  (Geithners' letter to Harry Reid) ECB's Coene: 'Anglo Saxons' still have doubts about euro's future Spain's Bankia shares hit hard UBS swiss consumption indicator 1.23 in November, down from 1.30 in October French December consumer confidence rises to 86 from 84 in November, stronger than Reuters' median forecast of 84 Italy December manufacturing business confidence rises to 88.9 from 88.5 in November, pretty much in line with Reuter's median forecast of 88.8.  Overall business morale however fell to 75.4 in December from 76.5 in November, the lowest read since January 2006 UK mortgage approvals for home purchase 33,634 in November, weaker than median forecast of 34,500 Not too much change this morning. EUR/USD up at 1.3268 from early 1.3230, the rally accelerating when buy stops tripped through 1.3255.   We've been up to test 1.3274, which is the 76.4% fibbo retracement of recent 1.3309/1.3159 sell-0ff. USD/JPY effectively unchanged at 85.75, pausing after it's recent run higher.  Sell orders clustered 85.85/00 ahead of next lot of barrier option interest at 86.00. Buy orders seen clustered 85.30/50, trailing sell stops through 85.20.