Foreign exchange markets are quiet once again amid low liquidity. KRW the worst performer, with the Kospi falling 1.5 percent at one point due to order error; this was initially attributed to speculation over instability in North Korea.
Flows are likely to remain light with London on holiday. Consensus expects US consumer confidence to rise to the highest level since July (15:00 GMT, consensus: 58.6), potentially lifting sentiment and offering support to high-beta currencies.
The Euro remained range bound against the U.S. dollar and the Yen amid subdued trading activity as traders wait for fresh developments in the euro zone for guidance. Most investors are on the sidelines enjoying their time off. EUR/USD trading range 1.3045 and 1.3076.
Since progress isn't expected in the building of a safety net, including an expansion of the EFSF [European Financial Stability Facility] and financial help from the international community, such as the IMF [International Monetary Fund], the euro may face selling pressure if the bond auction results aren't great. AUD/USD partly recouped some of its losses, trading near 1.0150. GBP/USD traded well below its three day high of 1.5707.
USD/JPY remained unmoved by November policy meeting minutes at 77.85. 1m ATM for USD/JPY is in the historically low 10-percentile range, as the pair continues to trade in a tight range.
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