This is a review of the elements likely to affect foreign exchange
(forex) trading in the European session:
G-7 Discusses Potential Fiscal Measures If Growth Falters - Bloomberg
Schäuble and Lagarde clash over austerity - FT
US Fiscal Cliff Is 'Major Concern' for World: IMF's Zhu - CNBC
Europe's Inflation Rates Diverge - WSJ
Currency hedge funds head for EM returns - FT
Iran finmin: country's FX reserves are in good position - Reuters
Jobless Claims in US Fall to Four-Year Low - Bloomberg
Fed Presidents Dismiss Allegation of Job Data Tampering - Bloomberg
Fed's Yellen says Europe, housing strains stifling US recovery - Reuters
Fiscal Cliff 'Plunge' Not Yet Priced In: Blackrock - CNBC
Romney extends lead over Obama: Reuters/Ipsos poll - Reuters
Brazil Swap Rates Fall on Copom Signal; Currency Little Changed - Bloomberg
Vale, Brazil's golden goose, faces challenges - Reuters
Asian Stocks Rise on Japan-China Dispute Talks, US Data - Bloomberg
Yen falls on intervention fear - FT
Japan and China Agree to Hold Talks on Rift After Noda Call - Bloomberg
China's Banks Said to Resist Cutting Lending Rates - Bloomberg
Amnesty warns over land grabs in China - FT
Japan Cuts Economic Assessment as Maehara Talks of 'Crisis' - Bloomberg
South Korea cuts rates to boost faltering growth - FT
Eichengreen: Growth Still Matters for Korea - WSJ
Pesek: Celebrity Economist Rushes to Save India - Bloomberg
Singapore Forgoes Currency Stimulus on Inflation Risk - Bloomberg
OECD's Gurria: Spain's Reluctance for Bailout Justified - CNBC
Weidmann Sees German Economy Stagnating in Second Half of 2012 - Bloomberg
Merkel hints at tax cuts for growth boost - FT
Europe Wins Praise From Geithner, Cohn as IMF, Germany Spar - Bloomberg
Greece's Largest Firm Flees Crisis-Torn Home for UK - Bloomberg
Poland's Push to Weaken Zloty That Never Was - WSJ
UK Home Values Drop as Olympic Knock-On Extends Summer Lull - Bloomberg
EADS CEO Faces Terminator Torment After Merger - Bloomberg
EUR: The euro cross-rates move sideways yesterday's rally. The lowest reading since February 2008 of initial jobless claims in the US prompted beta seeking strategies worldwide. Spain's sovereign rating cut by S&P had a short-lived effect. EUR-USD firms above 1.2950 and seems to be heading towards the next resistance zone found at 1.30. On the daily chart we see the formation of a batman technical pattern. EUR-JPY trades close to 101.70.
GBP: The sterling crosses show more subdued price action compared to the euro trades. Cable is under 1.6050 while GBP-JPY is close to 125.85. EUR-GBP is rallying towards the 0.8100 resistance zone.
CHF: The Swiss franc hedges up against the US dollar. USD-CHF is consolidating close to 0.9325 after breaching 0.9400 in the last few days. EUR-CHF is still trading below but close to 1.2100.
Nordics: The Swedish krona and the Norwegian kroner are buoyed by the strength of the euro. Both the SEK and the NOK advance versus the greenback. EUR-SEK trades close to 8.67 and EUR-NOK is below 7.39.
USD & JPY: The US dollar
and the Japanese yen are less in demand after the above mentioned IJC figures in the USA. Today's macro figures, PPI and Michigan, are not likely to affect USD trading.
CAD, AUD & NZD: The three dollars are favoured by a risk-off context. The kiwi leads the pack followed by the aussie and the loonie. They advance mostly against the yen that falls amid intervention rumours.