European Morning Wrap: Mundane Monday

Eurozone sentix investor confidence for January -7, demonstrably stronger than -16.8 in December and Reuters' median forecast of -15.0 Berlusconi strikes election deal with Northern League, wants to be economy minister Here is why USD/JPY big upside move is already behind us - Nomura Japanese business lobby head Yonekura:  Current 88.00 in USD/JPY acceptable.  Expects USD/JPY range of 75-90 Swiss December foreign currency reserves 427.2 bln francs,  not a million miles from Bloombergs' median forecast of 423 bln SNB's Zurbruegg:  Raising Swiss interest rates unthinkable Cameron's absurd behaviour over EU membership - Peter Mandelson in The Guardian Draghi seeks extended calm in 2013 on fading euro economy - Bloomberg EUR/USD touch firmer at 1.3045 compared to the 1.3033 which greeted me.  Early reports had buy orders clustered down at 1.3000/20 and these were tested when Middle Eastern sovereign selling (also sold the EUR/JPY cross as well)  pressured the pairing. We got to session low 1.3017 and then bounced.   Talk of LHS interest (sell interest) lined up for the 13:15 GMT fix has helped negate accelerated gains for the single currency so far.   Also talk of large 1.3000 option expiry at todays New York cut. USD/JPY pretty much unchanged at 87.87. This pairing has seen some increasingly choppy trade of late and the one-way ride northwards has now gotten a little more precarious.  Cable up at 1.6055 from early 1.6020.  Talk of buy orders clustered down at 1.5990/1.6010, sell stops below there.

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