Latest Forex News 4-12

USD: Stocks proving to be soft into the NY close, down around 0.5%, but notable that the dollar was reluctant to show any perkiness as would normally be expected. Fiscal cliff seems to be giving it more of a headache.

EUR: Holding steady overnight. Eurozone finance ministers meet today and Greek bond buy-back continues, the success of which is key to ensuring Greece gets its next aid tranche.

JPY: Relatively steady overnight, but still a modest downward bias on USD/JPY owing to the extent of short JPY positions which some are deciding to cover; the upward momentum has waned.

AUD: The RBA cut rates by 0.25% to 3.00% as broadly expected. The Aussie was slightly firmer on the news, reflecting some hopes of bigger cut. Around half of initial bounce unwound.

GBP: BRC retail sales data showed 0.4% YoY on line for like retail sales. Up from -0.1% Oct number, but weaker than expected. Eyes firmly on level of Christmas demand this month.

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Latest Forex News 3-12

USD: The grand-standing around the fiscal cliff shows both sides retaining their entrenched positions with no signs of compromise. The dollar implications are becoming less clear as the market struggles to buy the dollar on a ‘risk-off’ strategy - at the same time that the country is heading for a fiscal car crash.

EUR: German Chancellor Merkel suggesting that in time, Greece could see some of its debts written-off. Comments reported in Bild newspaper, but caveat is it could only happen once budget is on sustainable footing

JPY: Weekly CME data showing yen shorts at highest for several years, keeping risks of further down-moves in USD/JPY as short yen positions are covered.

AUD: Retail sales data on the soft side, holding flat in October, having risen by a month average of 0.3% over the past year. AUD falling for 3rd consecutive day on the back of the release, which cemented view that RBA will cut rates on Tuesday.

GBP: House price data overnight (Hometrack) showing holding in negative territory at -0.3% YoY. Focus turning to Wednesday’s Autumn Statement from the Chancellor, in which further fiscal demands are expected to be imposed on the economy.

CNY: Various purchasing managers' data released over the weekend and today, all showing modest increases and offering further comfort to the view of a controlled soft landing in China.