? The euro fell marginally vis-?-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4820 level and was capped around the $1.4870 level. Liquidity was reduced on account of the U.S. Thanksgiving holiday. Data released in the eurozone today saw EMU-13 September industrial orders off 1.6% m/m and up 2.0% y/y. Also, German Q3 final GDP growth was up 0.7% q/q. Traders await additional clues as to the likely course of monetary policy in the U.S. and eurozone. The FOMC is expected to ease interest rates further in December and/ or January whereas the ECB is not expected to ease rates in the near future. Euro bids are cited around the US$ 1.4575/ 1.4470 levels.
?/ CNY The yen weakened marginally vis-?-vis the U.S. dollar today as the greenback tested offers around the ?109.15 level and was supported around the ?108.30 level. Bank of Japan Policy Board member Nakamura dovishly said "If the housing correction intensifies, or the negative effects of the disruptions in financial markets become unexpectedly widespread, private consumption and fixed business investment may fall below expectations. This may lead to a further deceleration in the US economy, raising the downside risk for the global economy and may have some adverse impact on Japan." Data released in Japan overnight saw October supermarket sales off 1.1% y/y. Upside risks continue for the yen on account of global risk aversion. The Nikkei 225 stock index was up 0.34% to close at ?14,888.77. Dollar bids are cited around the ?106.55 level. The euro moved higher vis-?-vis the yen as the single currency tested offers around the ?162.25 level and was supported around the ?160.80 level. The British pound weakened vis-?-vis the yen as sterling tested bids around the ?223.30 level while the Swiss franc moved higher vis-?-vis the yen and tested offers around the ?99.10 level. The Chinese yuan came off vis-?-vis the U.S. dollar as the greenback closed at CNY 7.4145 level in the over-the-counter market, up from CNY 7.4110 level.
₤ The British pound extended recent losses vis-?-vis the U.S. dollar today as cable tested bids around the US$ 2.0595 level and was capped around the $2.0680 level. Data released in the U.K. today saw provisional Q3 business investment unchanged m/m and up 4.6% y/y. Some traders believe BoE’s MPC will ease interest rates as early as next month while others believe the MPC will ease beginning in early 2008. Cable bids are cited around the US$ 2.0365 level. The euro moved higher vis-?-vis the British pound as the single currency tested offers around the ₤0.7210 level and was supported around the ₤0.7175 level.
CHF The Swiss franc appreciated marginally vis-?-vis the U.S. dollar today as the greenback tested bids around the CHF 1.1005 level and was capped around the CHF 1.1040 level. Data released in Switzerland today saw Q3 employment at 3.87 million, up 2.7% q/q. Dollar offers are cited around the CHF 1.1185 level. The euro and British pound moved lower vis-?-vis the Swiss franc as the crosses tested bids around the CHF 1.6325 and CHF 2.2685 levels, respectively.
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