Daily Market Report 20/11/2012 Euro meetings come to a head Yesterday on reports that Greece will receive its long-awaited third tranche of bailout funds by 5th December, investors’ awakened risk appetite led the euro to a strong rally against many of its counterparts. Ahead of the Eurogroup meetings today, the euro’s appreciation reflected sentiment that the troika and Greece were coming to an agreement. Euro meetings come to a head Yesterday on reports that Greece will receive its long-awaited third tranche of bailout funds by 5th December, investors’ awakened risk appetite led the euro to a strong rally against many of its counterparts. Ahead of the Eurogroup meetings today, the euro’s appreciation reflected sentiment that the troika and Greece were coming to an agreement. Overnight however, France’s triple-A rating was downgraded by Moody’s to Aa1. This move represents a changing attitude towards the euro zone’s second largest economy and has already tested investors resolve this morning. In the US, suggestions that the US fiscal cliff worries can be quickly and efficiently solved spurred confidence in other riskier currencies, as the dollar finished the day weaker against most of its peers. Today the Eurogroup meetings will take precedent focusing on Greece, and whilst US housing data could cause volatility, again fiscal cliff progress will also be key in determining risk appetite. With encouraging revelations from either side of the Atlantic, we could see euro strength against dollar weakness. Today’s Key Announcements: 03.15am – JPY – Monetary Policy Statement 03.15am – JPY – Overnight Call Rate: <0.10% 07.00am – EUR – German PPI: flat at 0.0% All Day – EUR – Eurogroup Meetings 13.30pm – USD – Building Permits: expected slightly down at 0.87m 13.30pm – USD – Housing Starts: expected slightly down at 0.84m 17.15pm – USD – Fed Chairman Bernanke Speaks See previous Daily Market Reports