Forexlive European wrap: Soft French industrial production
French Dec Ind Production -0.1% from -0.2% exp
A mundane Monday morning saw things burst into life not long after the Europe/UK open.
EUR/USD had an early look towards 1.3400 before deciding to have a look at 1.3350 after the French figure. 1.3350 has certainly been very strong and we've stepped up through 1.3400 to a high of 1.3412.
GBP/USD was looking quite comfortable at 1.5800 first thing and an attempt at the upside looked possible. A story in the Telegraph that claimed the BOE inflation report would have them raising the inflation forecast while lowering growth put the skids under that. We broke through support and stops around 1.5770 before accelerating through more at 1.5750. We held the 1.57 handle for a while but the damage had been done and further selling entered the fray. We finish at 1.5692 from the low of 1.5677
USD/JPY was at the mercy of the jaw boners again. In fairly illiquid markets someone picked up on a old story from BOJ contender Haruhiko Kuroda that "some additional measures" could be justified for 2013 by the BOJ. From 92.50 we shot higher to 93 and then further climbed to sit on the session highs at 93.40/50
AUD/USD was back in familiar territory in the 1.0300 range but slid slowly down towards a reported 1.0250 barrier. It had a look three times before bouncing back to the 1.0280 area.
Thank you once again for you time and participation. Adam will be along shortly.
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