FX Weekly: 12th December 2011

• FX space largely unchanged last week as all currency pairs posted ±1% change against other G20 counterparts

• Gold prices were a shade lower, meeting strong support around $1670 per troy ounce

• Short-term, traders remain sceptical as to whether we have seen enough to reverse the crisis of confidence in the Euro-zone. Chances of an IMF program for either/both Italy and Spain has increased with news of an additional €200bn IMF fund

• Domestic demand is slowing in China as well as globally – prime data out this week could be the most market moving FX theme in the absence of revelations in Europe