Monday, December 13, 2010

no data out today.


China was the key driver of movement on Friday. Price action was primarily driven by PBOC decision to hike China’s reserve ratio requirement by 50bps.

This week market will be eyeing the US FOMC meeting on Tuesday and the Irish vote on EU/IMF package on Wednesday.

BoJ Governor Shirakawa again raised the possibility of further JGB purchases if the economy slows down faster than expected. Talks of heavy offers for USDJPY between 84.02/05.

Irish banks' borrowings from the ECB rise to EUR136.4 bn as of end-November, from EUR130 bn at end-October. Irish central bank offers EUR44.7 bn euros in special liquidity assistance to banks in Ireland.

GBPUSD likely to continue to stay quiet until UK CPI tomorrow.

No data out today, so we may just see a quiet market today.

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