We have been waiting for the results on Tuesday, had decided to see out of the meeting of finance ministers. No decision but to postpone the meeting for next Monday was not accepted that was put a pressure on risky assets. However, investors are living with a hope. As a result, the European currency finished trading slightly higher: EUR/USD – at 1.2820, and GBP/USD – in the area of 1.5940.
EUR/USD during the Asian session was able to reach a maximum of 1.2824 on false rumors approval tranche of Greece. However, when all fell into its place, the pair had fallen to a minimum of 1.2735. But even this did not calm down traders, trying to find something good to pick up a pair. The occasion gave Merkel and offered lower interest rates and increase the guarantees for EFSF by E10 billion as a solution to the financing of Greece to 2016. This brought the pair above 1.28 (1.2832 daily high), where trades were completed.
GBP/USD reacted to disappointing data from the eurozone, but was more subdued. Support for the pair was the fact that only one member of the MPC voted at the last meeting for the need to expand the program of asset purchases by 25 billion pounds. Thus, the chances that by the end of this year, the Bank of England will go to the easing of monetary policy are not great. This led to the pair restoration of low morning session to a maximum of 1.5881 and 1.5948 just below the end of trading.
USD/JPY continues to be influenced by political battles. Now to the provocation of Shirakawa reply the main opposition Abe. Potential leader of the upcoming elections in Japan on December 16 the head of the Liberal Democratic Party, Shinzo Abe comes again, responding to yesterday’s comments of the Bank of Japan’s Shirakawa, and explaining that he was not in favor of government bonds direct purchases from the Central Bank, and for buying them in the market. He also said the mention of a specific inflation target of 3%, saying that he meant the range of 2-3%.
In addition, the leader of the LDP was something to balk: Japan reported that its net trade balance remained in deficit area of the 4th month in a row in the ongoing fall in exports, which is experiencing the worst year since the global economic slowdown in 2009. As a result, the pair from the opening level of 81.67 broke through 82.00 and reached a maximum of 82.53 and finished the day.