AUTOREFRESH 
Pending home sales rise 5.2%; Factory orders rise 0.1%
June factory orders revised higher, to -0.6%.
Yields are rising further and equities are firming as the data is okay, not dreadful.
US 10-year notes are up to 2.63%
Claims 472,000 from 478,000
Also of note, non-farm productivity fell 1.8%. Perhaps business will have to start hiring again before long.
ForexLive European Wrap: Not much going on. GBP has poor morning, CHF good one
- Sweden’s Riksbank raises key repo rate to 0.75% from 0.5%
- French Q2 ILO jobless rate falls to 9.7%, better than median forecast of 10%
- Japan’s Ozawa: FX intervention just by Japan may not have much effect, but should be prepared to act
- Swiss Q2 real GDP +0.9% q/q, +3.4% y/y, better than median forecasts +0.8%, +2.7% respectively
- Nationwide UK August house prices -0.9% m/m, +3.9% y/y. Much weaker than median forecasts of -0.3%, +4.9% respectively
- UK construction PMI 52.1 in August, down from 54.1 in July. Much weaker than median forecast of 53.2
- Euro zone Q2 GDP confirmed at +1.0% q/q. Revised up to 1.9% y/y from previous 1.7%
- Swiss retail sales +4.8% y/y in July, better than median forecast of +2.3%
- Spanish/German 10 year government bond yield spread fall to 169 bps . Lowest since August 20
Not too much going on. Sterling has had a poor morning, underminned by poor house price, construction PMI data. Swissy on the flip side has had good morning, underpinned by good Q2 GDP, retail sales data.
EUR/USD firmer on day, up at 1.2825 from early 1.2790. The pairing did suffer a bit of a swoon posting a session low 1.2777, but ready buyers emerged. The sell-off seemed to coincide with announcement of Swedish rate hike, which saw heavy selling of the EUR/SEK cross.
Asian central bank and hedge funds notable buyers below 1.2800 this morning. On the topside sell orders noted at 1.2830/50 and they’ve helped cap rally attempts at 1.2838 so far.
Cable down at 1.5400 from early 1.5445. Poor UK house price/construction PMI data have weighed on sterling. Real money buyer seen around 1.5375 low helping lend much-needed support.
EUR/GBP up at .8325 from early .8280, but sell orders noted at .8330/50 have capped topside at .8338 so far.
EUR/CHF down at 1.2980 from early 1.3015 having been as low as 1.2945 at one stage. Swissy supported by strong GDP/retail sales data. UK clearer notable seller in very early trade.
USD/JPY unchanged at 84.18. Got as low as 84.01 before decent buying from a Dutch bank lent much-needed support. The Danish bank, who has been notable buyer of late, was also said to have been in buying again.
Spanish/German 10-year government bond yield spread falls to 169 bps
Lowest since August 20. Hooray!!!
UK construction PMI 52.1 in August
Versus 54.1 in July. Much worse than median forecast of 53.2.
It’s all coming apart at the seams (that’s better) I tell ya!!! I packing my bags and moving to ……..Sweden!!!
“You can dance, you can jive having the time of your life
See that girl, watch that scene, diggin’ the dancing queen”
No decision yet on Anglo Irish bank – Government source
- Govt still discussing either gradual wind-down or good bank/bad bank split with EC
China won’t launch new stimulus but will be wary of exiting from current one – Govt researcher
- China has no need for big economic initiatives, credit growth ample
Swedish central bank raises key repo rate to 0.75% from 0.50%
As expected.
Swedish crown rises vs euro in wake of move. Guess selling of EUR/SEK will be weighing on EUR/USD which is down at 1.2785. EUR/SEK cross down around 9.3100 from 9.3321 just prior to rate increase announcement.
Swiss retail sales +4.8% y/y in July
Stronger than median forecast of 2.3% y/y.
Spain’s August jobless rate rises 61,083
To 3.97 mln.
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