Forex Flash: Follow-up EU meeting scheduled for November 20 – UBS (Barcelona) - It seems a breakthrough to the Greek quagmire is still some way off with EU finance ministers now due to meet again on November 20 – they may also schedule a conference call on November 28. According to Gareth Berry, a Research Analyst at UBS, “The null outcome just now, although expected, will increase the market attention on Tuesday's issue of Greek T-bills.” Already a newspaper report has suggested that the ECB has loosened collateral rules further in an apparent bid to ensure the auction is a success.

Elsewhere in Europe, Italy's debt management agency said that the proportion of Italian public debt owned by foreigners has fallen to 35% now, having stood at 51% in mid-2011. The Bank of Italy sounded a more optimistic note however, observing that there has been a pick-up in foreign demand for Italian government bonds in September and October.

According to Berry, “We reiterate our bearish stance on the EUR/USD, with a focus on the support at 1.2608, ahead of 1.2474.”