- ECB’s Draghi: ECB will do what is necessary to ensure price stability, will remain independent, will act within mandate - Die Zeit
- Italy’s Monti: Italy’s measures starting to offset market concerns
- Spain Economy Minister: Govt not negotiating any further austerity measures. Govt in agreement with EU over terms for creating a bad bank
- Japan MOF’s Nakao: Economy suffering from strong yen
- German lawmakers see systemic risk in ECB - Handelsblatt
- Greek islanders attack tax inspectors
- S.Korea FinMin: Fresh global monetary easing “inevitable”
- China’s economy shows signs of stabilizing - NDRC
- German BGA business lobby: Germany faces cooling economy, not a recession
- French August manufacturing industry morale 90, up from 89 in July
- Swiss August KOF indicator 1.57, up from 1.41 in July and better than median forecast of 1.50
- Danish Q2 GDP -0.5% Q/Q, -0.9% y/y, demonstrably weaker than Reuter’s median forecasts of -0.2%, -0.2% respectively. Q1 GDP data revised down to +0.3% q/q from prelim +0.4%
- Italy June retail sales s.a +0.4% m/m, unadj -0.5% y/y – ISTAT
- Italy August consumer confidence index falls to 86 from 86.5 in July
- Group of seven nations ‘stands ready’ for emergency oil release – Telegraph
- Catalonia’s 5 bn plea brings Spanish bailout nearer – Guardian
EUR/USD sat at 1.2557 when I arrived and it sits presently at………………………1.2557
Inbetween we’ve been as low as 1.2532 and as high as 1.2573, but never did it look remotely like we were going very far. Periphery bond yields rose early helping pressure the single currency. They then fell back and the single currency rallied. Simples.
USD/JPY sits at 78.58, exactly where it started the day.
Cable sits at 1.5821, up 6 pips on the day.
AUD/USD unchanged at 1.0365.
The BIG mover this morning has been NZD/USD, down at .8020 from early .8045, having been as low as .8010. China and hedge fund selling notable from the get go.
Talk of bids clustered just ahead of barrier option interest at .8000.
