News Headline Summary


The European session has seen risk-on moves across the board due to optimism over fiscal cliff talks. Late yesterday, President Obama was said to have increased his proposed tax rate threshold to USD 400,000 showing that he is willing to meet in the middle with the Republican Party. Major European bourses are holding onto minor gains after opening marginally higher following these comments on the fiscal cliff, however volumes remain light as participants are winding down for the Christmas period with the majority of key data releases out of the way. In terms of sector breakdown, Basic Materials (+0.72%) is the best performing sector in Europe as two of Europe’s largest miners, Glencore and Rio Tinto were upgraded this morning by RBC and BNP respectively.

In the FX markets, EUR/USD moved to its highest level since May at 1.3183 as USD weakness has been observed across the board due to optimism on the fiscal cliff talks. In the lead up to UK inflation data, GBP/USD moved to fresh session highs at 1.6228, with the headline CPI figure printing in-line with expectations at 2.7%. Market talk of an Asian sovereign name on the offer at 1.6230 also capped any further upwards move in the pair.

Looking ahead, volumes are expected to remain thin as there remains a lack of tier-1 data out of Europe and the US.

18 Dec 2012 - 11:46 - Forex Data - Source: RANsquawk

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