European FX Midday recap

13:28CET

These are the items that have been hitting the wires and causing some kind of market action:

    * China says “extremely important and urgent” to encourage talks on Korean situation
    * China state councillor Dai Bingguo to visit North Korea – Kyodo
    * Rumour: German Landesbanks having problems with access to liquidity
    * Rumour: France to be put on negative watch by S&P
    * Rumour: US bank has put out note saying “Portugal is insolvent”
    * French Budget Minister Barion: No risk of France credit rating being downgraded
    * ECB buys 5 year Irish bonds (and probably other pheriphery bonds)
    * Spain’s EconMin Campa: Elevated financing cost will be worrying if it lasts
    * Spain banks face funding hurdle amid bailout threat – Bloomberg

Technically speaking, the EUR continues to be smashed across the board, and has a new front of battling: the JPY-CHF connection. The unit is getting very oversold (OS) vs the USD in almost all timeframes, and likewise vs the CHF, the situation is getting unsustainable with the so-called single currency. But even funnier is the long/short positioning by retail traders, who must again be making huge loads of money as it keeps being NET SHORT in EUR/USD.................unbelievable.

Nov 30, 2010 13:20 GMT+0100

   1. USD/JPY
      76.04% 23.96%
   2. XAU/USD
      69.23% 30.77%
   3. USD/CHF
      66.58% 33.42%
   4. USD/CAD
      62.42% 37.58%
   5. AUD/USD
      50.22% 49.78%
   6. EUR/USD
      47.79% 52.21%
   7. GBP/USD
      45.70% 54.30%

Posted via email from MT4