The news in London was pretty well all EUR negative as economic data continued to deteriorate and rumors swirled that Ireland may need emergency funding from the IMF. Eurozone industrial production slowed to a dismal -7.7% annual rate in November, and the biggest drop since December 1990. Meanwhile, news out of Ireland that the country may need to seek funds from the IMF if the economy does not improve spooked EUR longs. EUR/USD slipped more than -80 pips in the session and was sitting near 1.3220/30 just ahead of NY trading. Yesterday's 1.3140 low now looks like the next crucial short-term support here.
The yen crosses headed lower as well on a fresh dose of risk aversion on the back of some negative news out of the financial space. European stock marts were about -2% lower. USD/JPY lost about -35 pips towards 89.40/50 while EUR/JPY shed more than -120 points into the 118.30/40 area. Below 89 and 118, respectively, should see losses accelerate a touch here. USD/CAD added about 70 pips to just above the 1.22 level after grinding as low as 1.2120/30 earlier. The dip in oil to back below $39/bbl led the decline here.
Upcoming Economic Data Releases (NY Session) prev est
* 1/14 13:30 GMT US Import Price Index (MoM) DEC -6.70% -5.30%
* 1/14 13:30 GMT US Import Price Index (YoY) DEC -4.40% -9.50%
* 1/14 13:30 GMT US Advance Retail Sales DEC -1.80% -1.20%
* 1/14 13:30 GMT US Retail Sales Less Autos DEC -1.60% -1.40%
* 1/14 13:30 GMT US Fed's Plosser Gives Economic Outlook
* 1/14 15:00 GMT US Business Inventories NOV -0.60% -0.50%
* 1/14 15:30 GMT US DOE U.S. Crude Oil Inventories 6682K 2750K
* 1/14 15:30 GMT US DOE U.S. Gasoline Inventories 3334K 2000K
* 1/14 18:00 GMT US Fed's Stern Speaks on Policy Prospects
* 1/14 19:00 GMT US Fed Releases Beige Book Report