Dollar pulls off lows

Good Morning,

- Dollar pulls off lows ahead of Fed’s meeting later today.

- Unusual calm trading over Asian markets on Wednesday as a brewing financial crisis in Russia and the rout in oil prices sent investors scurrying for the cover of top-rated bonds.

- Yields on British, German and Japan sovereign debt had all hit record lows while long-dated U.S. and Australian yields reached their lowest since 2012.

- ECB’s Nouy says Eurozone exposure to Russia is containable. doesn’t fear problems for banks in Europe from problems in Russia, “modest and containable”, optimistic about Greece. French banks have a satisfactory ”security mattress”.

- BOE Cunliffe sees disinflationary pressure coming from overseas.

- Russian FinMinistry egins selling FX on Mkt, says that Ruble is undervalued.

- Russia’s surprise interest-rate increase failed to stop the plummeting ruble. The next weapon available to repair economic havoc caused by sanctions and falling oil prices: selling gold. Russia holds about 1,169.5 metric tons of the precious metal, the central bank said last month. That’s about 10 percent of its foreign reserves, according to the London-based World Gold Council. The country added 150 tons this year through Nov. 18, central bank Governor Elvira Nabiullina told lawmakers. Russia’s cash pile has dropped to a five-year low as its central bank spent more than $80 billion trying to slow the ruble’s retreat.

- U.S. President Barack Obama will sign legislation authorizing new sanctions on Russia over its activities in Ukraine and providing weapons to the Kiev government by the end of the week, the White House said on Tuesday.

- Foreign-exchange brokers suspended transactions or raised the cost of trading the ruble as record price swings crimped liquidity. FXCM, will stop offering the ruble versus the dollar and begin closing its customers’ trades. Alpari UK Ltd. stopped clients from taking new positions, while Saxo Bank A/S and Gain Capital’s Forex.com said they planned to demand a higher deposit from clients to deal in the currency.

- Goldman Sachs on AUD/USD: After a six-week breather, the AUD started to depreciate again in the middle of last month and since November 14, it has declined by more than 5.2% against the USD, ranking as one of the weakest currencies in the intervening period, notes Goldman Sachs. GS now sees AUD/USD at 0.83 in 3 months, 0.81 in 6 month, and 0.79 in 12 months. Why stop at 0.79? "At 0.79, the big dislocation between the deterioration in Australia's terms of trade and the AUD will be closed on our estimates and the market already discounts at least one cut from the RBA,"

- Japan's exports grew for a third straight month in November from a year earlier, but much more slowly than expected and despite a sharp fall in the yen as slowing demand in Asia and Europe dampened trade. The 4.9 percent rise in exports was much weaker than a 7.0 percent gain seen by economists in a Reuters poll, slowing from a 9.6 percent gain in October, Ministry of Finance data showed.

- Data out of the UK yesterday showed inflation had ebbed to its slowest in 12 years in November, arguing strongly against the need for early rate rises from the Bank of England.

- RBNZ Assistant Governor McDermott: $NZD rate remains unjustifiable, unsustainable.

- Third-quarter GDP figures are likely to highlight an underlying theme in New Zealand of strong growth, led by the construction and dairy industries. Analysts are picking GDP growth of around 0.7-0.9% last quarter, which would be a gain on second-quarter growth of 0.5%. Year-on-year growth is expected to have moderated to 3.3% in the September quarter from 3.5% previously. The Reserve Bank of New Zealand (RBNZ) is on the more optimistic side of forecasts, expecting growth of 0.9%.

- Brent leaked another 66 cents to $59.35 a barrel in Asia on Wednesday, while U.S. crude lost $1.12 to $54.81.

- Watch today: EU CPI, US CPI, Fed forecasts.

Have a nice Day !