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• UK final Q3 GDP revised to +0.9% q/q
• Japan LDP senior official: Need to consider how to keep DLR/YEN around 85-90 yen
• USD/JPY touch firmer
• Aide to Japan’s next PM Abe: No need to revise BOJ law as long as central bank meets party’s expectations
• Dutch final Q3 GDP -0.9% q/q, -1.5% y/y
• Time for a bit of Slade
• French manufacturing industry morale rises to 89 in December
• France’s Hollande: Unemployment will continue to rise in France
• Buba’s Weidmann: Doesn’t see inflation risks in next two years
• German Gfk consumer confidence survey for January 5.6
• Up soon……
• European stocks set to open lower
• Eurogroup’s Juncker says end of euro zone crisis not yet in sight but peak has been crossed
• We’re going over the cliff man!!
• Doubts remain over Spain’s austerity miracle
• Japan faces prospect of third decade of low growth
• Ideas Corner/December 21st
• ForexLive Asia Wrap Friday 21Dec2012: Plan B fails to muster the votes – Stocks hit limit down on stop run
• Bloomberg: House Scraps Vote on Boehner’s Tax Plan Lacking Support
• Washintgton Post: Asian Stocks Fall as Republicans Cancel Vote on U.S. Budget Plan

UK final Q3 GDP revised to +0.9% q/q Posted: 21 Dec 2012 01:38 AM PST From +1.0% Y/Y revised to unchanged from -0.1%. November PSNB 15.328 bln, worse than Reuters’ median forecast of 14.2 bln. Cable sits at 1.6245, exactly where it was when I dragged my sorry arse downstairs some four and a quarter hours ago.

Japan LDP senior official: Need to consider how to keep DLR/YEN around 85-90 yen Posted: 21 Dec 2012 01:20 AM PST Reuters headline. LDP’s Ishiba: Japan must keep yen at 85 to 90 vs $, Kyodo – Bloomberg

USD/JPY touch firmer Posted: 21 Dec 2012 01:14 AM PST We’re presently at 84.13 compared to the 83.95 which greeted me. I was just reading some stuff from a major US bank.  They mention that Japanese importers still have some year end business to be done (demand for dollars) There is also talk of buy orders clustered down in the 83.50/70 area.

Aide to Japan’s next PM Abe: No need to revise BOJ law as long as central bank meets party’s expectations Posted: 21 Dec 2012 12:55 AM PST Hopes BOJ agrees to 2% inflation target when new govt compiles economic stimulus measures in mid-January That headline reminds me of the mobster phrase ‘I made him an offer he couldn’t refuse’

Dutch final Q3 GDP -0.9% q/q, -1.5% y/y Posted: 21 Dec 2012 12:34 AM PST Slight improvement from preliminary -1.1%, -1.6% respectively. EUR/USD sits at 1.3207 in exceedingly quiet trade.  Anyone would think Christmas was just round the corner…..

Time for a bit of Slade Posted: 21 Dec 2012 12:24 AM PST

French manufacturing industry morale rises to 89 in December Posted: 20 Dec 2012 11:48 PM PST From 88 in November, in line with Reuters median forecast. EUR/USD trading being confined to a very narrow range either side of 1.3200, so far.

France’s Hollande: Unemployment will continue to rise in France Posted: 20 Dec 2012 11:41 PM PST And he wonders why he’s unpopular…… Reaffirms 2013 public deficit target of 3% of GDP

Buba’s Weidmann: Doesn’t see inflation risks in next two years Posted: 20 Dec 2012 11:15 PM PST But ECB must act if inflation risks rise Spoken like a true Bundesbanker OMT conditionality is not credible OMT program puts ECB on slippery slope Monetary policy, supervision conflict not resolved Weidmann being…………………………….well Weidmann Chill Jens, IT’S CHRISTMAS!!!!

German Gfk consumer confidence survey for January 5.6 Posted: 20 Dec 2012 11:00 PM PST Down from revised 5.8 in December and weaker than median forecast of 5.9. Bummer EUR/USD slides back down through 1.3200, presently 1.3195.

Up soon…… Posted: 20 Dec 2012 10:43 PM PST At 07:00 GMT we have the release of German Gfk consumer confidence survey for January, with the consensus forecast calling for an unchanged 5.9 read.

European stocks set to open lower Posted: 20 Dec 2012 10:37 PM PST Not by toooooo much though. U.S. budget impasse innit FTSE seen down as much as -0.3%, DAX down as much as -0.6% and CAC 40 down as much as -0.4%.

Eurogroup’s Juncker says end of euro zone crisis not yet in sight but peak has been crossed Posted: 20 Dec 2012 10:26 PM PST Official speaking on German radio. Must maintain efforts to overcome debt crisis Eurogroup to discuss Cyprus in January Debt haircuts only apply in exceptional cases Assume haircut won’t be among instruments used for Cyprus

We’re going over the cliff man!! Posted: 20 Dec 2012 10:12 PM PST Well possibly, maybe. Personally I’m a big believer in the last minute deal.  We’ll see. We start the day certainly in risk-off mode. EUR/USD hovers around 1.3200, having been down to test important technical support at 1.3180. Not too surprisingly, talk of sell stops gathered through 1.3170 and more through 1.3150.

Doubts remain over Spain’s austerity miracle Posted: 20 Dec 2012 09:58 PM PST Love him or loathe him, latest from AEP at The Telegraph.

Japan faces prospect of third decade of low growth Posted: 20 Dec 2012 09:53 PM PST ‘Tokyo is sailing further into debt with Bank of Japan delivering third shot of monetary stimulus in four months’

Ideas Corner/December 21st Posted: 20 Dec 2012 09:44 PM PST Got any ideas you’d like to share with your fellow readers, then here’s where to stick ‘em.

ForexLive Asia Wrap Friday 21Dec2012: Plan B fails to muster the votes – Stocks hit limit down on stop run Posted: 20 Dec 2012 08:07 PM PST Data/economics/comments New Zealand – November Short-term visitors +0.8% y/y (Permanent/long-term visitors +590 SA) New Zealand – November Credit Card Spending +0.4% m/m (vs. +0.3% prior) UK – December GfK Consumer Confidence fell to -29 (from -22 in November) China – December Flash MNI China Business Sentiment at 52.23 (vs. Nov 53.78) The BIG mover of the markets today was politics: The “Plan B” vote was scheduled for 7.30pm ET. In the hours after the New York close leading towards the vote, EUR/USD lost 20 points. Prior to 7.30pm ET news crossed the wires that the House had gone into recess, that the Republicans could not muster enough votes to pass Plan B. The vote was then cancelled. All the risk currencies lost more ground, EUR/USD falling from 1.3225 to 1.3189, the AUD falling to 1.0338, NZD to 0.8300, and Cable to 1.6241. Meanwhile, US overnight equity futures (Globex) got smashed, the March Emini S&P contract falling from around 1437 to a low of 1391 in minutes (limit-down), before bouncing to around 1420. EUR, AUD, NZD and Cab;e all stabilized The Yen strengthened on the session The situation is very fluid (and the market illiquid ); the latest expectation (as of writing) is that the House will be back on December 27 to pursue negotiations.

Bloomberg: House Scraps Vote on Boehner’s Tax Plan Lacking Support Posted: 20 Dec 2012 07:39 PM PST Continuing our recap of the Plan B failure reporting in the major outlets: House Scraps Vote on Boehner's Tax Plan Lacking Support House Republican leaders canceled a planned vote tonight on Speaker John Boehner's plan to allow higher tax rates for annual income above $1 million, throwing already-stalled budget talks deeper into turmoil. "The odds go up that we go over the fiscal cliff," said Representative Rob Bishop of Utah, a Republican.

Washintgton Post: Asian Stocks Fall as Republicans Cancel Vote on U.S. Budget Plan Posted: 20 Dec 2012 07:22 PM PST Asian stocks fell, with the regional benchmark index heading for the first two-day loss in five weeks, after U.S. House Republican leaders canceled a planned vote that would permit higher taxes amid stalled budget talks. Full article

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