ForexLive Asia Wrap Friday 21 Dec 2012: Plan B Fails to Muster the Votes – Stocks Hit Limit Down on Stop Run

Data/economics/comments New Zealand - November Short-term visitors +0.8% y/y (Permanent/long-term visitors +590 SA) New Zealand - November Credit Card Spending +0.4% m/m (vs. +0.3% prior) UK - December GfK Consumer Confidence fell to -29 (from -22 in November) China - December Flash MNI China Business Sentiment at 52.23 (vs. Nov 53.78) The BIG mover of the markets today was politics: The "Plan B" vote was scheduled for 7.30pm ET. In the hours after the New York close leading towards the vote, EUR/USD lost 20 points. Prior to 7.30pm ET news crossed the wires that the House had gone into recess, that the Republicans could not muster enough votes to pass Plan B. The vote was then cancelled. All the risk currencies lost more ground, EUR/USD falling from 1.3225 to 1.3189, the AUD falling to 1.0338, NZD to 0.8300, and Cable to 1.6241. Meanwhile, US overnight equity futures (Globex) got smashed, the March Emini S&P contract falling from around 1437 to a low of 1391 in minutes (limit-down), before bouncing to around 1420. EUR, AUD, NZD and Cab;e all stabilized The Yen strengthened on the session The situation is very fluid (and the market illiquid :-) ); the latest expectation (as of writing) is that the House will be back on December 27 to pursue negotiations.