[ForexNews]

Risk appetite remains reasonably bid. Equities in Europe are rallying 60bps on average, fueled by a 1.5% jump in industrial stocks. The session in Asia was mixed thought. India and Japan fell close to 50bps, while Korea and China rose 1.1% and 60bps, respectively. The Shanghai Index has been performing very well the last week. It is already trading 10% above its key 3,000 level. The next major stop comes at 3,478, its YTD highs registered on early August. The Bovespa in Brazil closed yesterday at a new high for the year. Commodity prices this morning are bid. “Black gold” is back above $80, gold is printing new all-time-highs. Further for EM, copper is jumping 1.6%. Risk barometers remain in risk taking mode and money continues to search asset classed and prices.

Investors are digesting US Oct CPI data printed in line with expectations,. while Housing Starts were weaker than expected.

Also, pay attention to weekly US crude inventory data.

- An interesting article in the FT from Obama/Jintao meeting in China, worthwhile the read:

FT.com / Columnists / Martin Wolf - Grim truths Obama should have told Hu

The DXY Index continues to fight with its 74.75 support level. Commodity currencies and the EUR are particularly bid today. GBP and JPY are close to flat. It is interesting to mention that historically December tends to be a very positive month for EUR/USD. The chart below is self-explanatory. Watch for excessive volatility then now that we approach the last month of the year.

EUR/USD – December seasonality something to pay attention to…