European FX Midday recap

13:43CET

These are the items that have hit the wires and caused some market moves so far in European trading:

    * Moody’s puts Spain’s AA1 rating on review for possible downgrade
    * Spain’s EconMin: Spain’s debt rating continues to show Spain’s solvency.  Within 3 months Spain’s rating will turn positive (put that in your pipe and smoke it Moody’s)
    * UK November jobless claims -1.5K,  weaker than median forecast -3k.  ILO  jobless +35,000 in 3 months to October. Rate 7.9%, higher than median forecast of 7.7%.  Highest rate since February-April 2010
    * Merkel: Euro has proved itself to be resistant to crisis
    * UK CBI retail sales balance +56 in December vs +43 in November. Much better than median forecast of +35.  Highest since April 2002. On flip side retail sales expectations balance +35 for January, lowest since July.  Things effected by introduction of VAT increase in January

Busy morning again. Hasn’t anyone told the market Christmas is just round the corner. It’s getting silly.

Trading wise, I'm beginning to really like EUR/CHF longs here as well as USD/CHF longs on any reasonable dip. Selling EUR/USD around 1.3370-80 or 1.3420-40 looks like a good intraday plan, too. I would not touch the other pairs as it seems the major part of the action will be concentrated on the ones mentioned, so sticking with the proposed plan I feel one may get some pips.

Posted via email from MT4