European FX Midday recap

12:50CET

These are the items that have been hitting the wires and that have had some impact in the financial and FX markets thus far this European morning:

    * Artillery shells fired by North Korea hit South Korean island, fatalities
    * S.Korea says it was conducting military drill in area before North Korea firing.  Says conducted test firing before exchange at island.
    * German FinMin Schaeble: Joint currency is at stake
    * Euro zone  manufacturing PMI 55.5, stronger than median forecast of 54.4
    * EU, ECB, IMF: Greece agreed new measures to broaden tax base, cut health sector and state firm waste
    * IMFmission chief for Greece: Athens broadly on track on fiscal plan
    * Greece’s main labour union calls for pan-european anti-austerity strike in 2011 – Union spokesman
    * Portugal opposition lawmaker says to allow passage of 2011 budget
    * German Q3 GDP (final) +0.7% q/q, +3.9% y/y, as expected
    * Irish c.bank governor: Not certain all of bailout package will be drawn down. There will a lot of conditions attached to the bailout
    * Bank of Spain’s Ordonez: Economy will take time to create jobs, recovery will be soft
    * Bank of Spain’s Ordonez: Spain’s deficit cutting plans more serious than some other countries
    * Italy November consumer confidence 108.5, stronger than median forecast of 107.5
    * French November manufacturing industry business morale 100, weaker than median forecast of 102
    * UK October mortgage approvals for home purchase 30,766, down from 31,058 in September, lowest since March 2009
    * ECB’s Tumpel-Gugerell: Money market conditions in euro zone are improving

Technically speaking, EUR is under heavy pressure as it can't even regain the 1,3585-90 level, a thing that also is confirmed by the failure by Gold to breach back above the dynamic resistance line @ $1,365, which is putting a real cap on AUD/USD. I favor selling this unit @ 0.9825-30 (we've been there 2-3 times today), targeting 0.9780 at least for today and stop above 0.9875. So far this is not a usual Tuesday.

Posted via email from MT4