Market Overview

European Morning Wrap: After Yesterdays' Fun and Games, This Morning's a Lot Calmer


UK's Cameron:  Promises to hold referendum on EU by 2017
UK's Cameron:  EU must change to bring prosperity, keep support
UK's Cameron:  I'm in favour of a referendum on EU membership
German ForMin: Germany wants UK to be active part of EU
IIF's Dallara: Market sentiment has improved tremendously
UK jobless claims for December -12,100, better than Reuters median forecast of flat.  Claimant count rate unchanged at 4.8%, as expected.  Ilo jobless -37,000 in 3 months to November, rate 7.7% which is slightly better than Reuters' median forecast of 7.8%
Latest Bank of England minutes
Spain Q4 GDP shrinks -0.6% from Q3
French January manufacturing morale index falls to 86 from 89 in December,  weaker than median forecast of 90
French FinMin: France's tax burden needs to be reduced (too true blue)
Swiss  ZEW investor sentiment improves to -6.9 in January from -15.5 in December
In Greece, Syriza and New Democracy involved in a war of words - ekathimerini

Kinda boring morning after yesterdays volatility.  There were bursts of activity, but also long periods of drudgery.

EUR/USD marginally firmer at 1.3340 from early 1.3300, major French bank and Asian sovereign buying notable into early dip below 1.3300.  Talk of some sell orders clustered 1.3350/60 and we've been as high as 1.3344 so far.

Cable up at 1.5850 from early 1,5825.  Inbetween cable bears tried to take out well-documented 1.5800 barrier option interest but only managed to get to 1.5802 before bounce.  Middle Eastern buying notable in the early recovery which eventually reached a session high 1.5884 after the release of better than expected UK jobs report (see above) From there we slipped gently back t0 1.5850.

At the end of the day, I'd catagorise this consolidative trading after the recent sell-off.  Obviously Fridays release of provisional Q4 GDP data is going to be a big driver of price volatility.  Whatever the result I just can't envision lacklustre price action after its' release.

USD/JPY marginally firmer at 88.32 from early 88.12.  Anyone for a long dose of 85-90 range trading?

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Forex Global Economics Markets Trading Ideas


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