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EU: “New elements” on the table in EU Ministers Greek talks

That would be Tzatziki, Taramusalata. Mousaka , backlava then ….;)

Macro sellers in EUR/GBP following the BOE announcement

The cross is getting kicked down from 0.8376 to 0.8354 following the QE increase. There’s some support down around 0.8350 but stronger in the 0.8330/35 area.

BOE comments…

• Sees gradual strengthening of output this year
• Inflation likely to decline further
• Near-term growth outlook is weak
• Sees 3mths for completion of AFP program
• Size of bond auctions to be £1.5 bln, will keep scale of bond purchase program under review

BOE leaves rates on hold at 0.5%, and increases QE asset purchases to £325bln from £275 bln

Bang on expectations but might disappoint some 30% who thought the increase in QE might have been £75bln

Cable getting a relief rally on this, up around 1.5860 from the low 1.5820′s

Senior EU official (Dow Jones): Greece given until Sunday to find Eur 300 mln in cuts for 2012

Doesn’t look like any decision till Sunday now then….meanwhile 2 days of strikes to precede it

EUR/USD’s just shed another 10 pips and we’re down around 1.3260

EU’s Altafaj: Declines to confirm 15 day extension of deadline for Greece

• Won’t comment on specific elements of Greek talks
• Talks have moved forward and parties are working “against the clock”
• “Some room for flexibility” in talks (….i smell a delay again)
• Greek bondholder agreement has to be voluntary

EUR/USD leaks a few bids again on the comment but is still holding around 1.3270

Forexlive European Wrap: All quiet before BOE/ECB decisions and the next likely delay..

• Troika gives Greece 15 days to find pension cuts alternative
• German Govt official: Sees no decision on Thursday evening in Brussels
• UK Dec Global goods trade balance -£7.11 bln (cons -$8.6bln) vs rev £-8.91bln in Nov
• Greece’s labour unions call for 48 strikes from tomorrow in protest against EU/IMF measures
• Swiss consumer sentiment at -19 in Q1 after -24 points in Q4
• Spanish FinMin: Expects worse contraction in Q1 2012 than Q4 2011
• China January passenger car sales fall most in 7 years
• China’s FX regulator (SAFE):  China to maintain C/A surplus in 2012 despite debt crisis
• Greece Nov unemployment up to 20.9% from 18.2% in Oct, Dec Industrial output -11.3% y/y from -7.8% in Nov. Jan consumer inflation 2.3%y/y from 2.4% in Dec

Not the most exhilarating morning as the world waits for some decisions from Greece. Europe has range traded 1.3265-1.3307  this morning in the EUR/USD after an early rally flushed out the much reported 1.3300 barrier.

The remainder of the morning saw little action with talk of the mighty BIS sitting on top just above the 1.3300 handle and the dip seen on the back of a  German Govt official’s comment that Thursday night’s Fin Min  meeting in Brussels wouldn’t bring about a decision anyway.

This prompted a small scuttle down through some 1.3270 stops to 1.3265 but it seems like there are plenty of names willing to load up euro’s again  down there and we’ve been treading water since between 1.3270-90

Cable was a bit of a non-event as well, despite improved trade and manufacturing data, trading 1.5824-62 ahead of the BOE announcement where the focus will be on the size  of the asset purchase decision. Most expecting £50 bln ,but apparently some 30% looking to 75 bln.

EUR/GBP eased back on the session from 0.8401 to 0.8371.

USD/JPY slept through a 77.12-24 range,  and EUR/JPY slipped from 102.73 to 102.37 following the  EUR/USD lower.

AUD/USD’s been supported by EUR/AUD slippage from 1.2307 to 1.2274, and seems well demanded under 1.0800, but  offers  in the 1.0820/30 zone are currently halting a further run up

EUR/CHF was largely dormant with all eyes on tomorrow’s CPI data which could be pivotal for the SNB and the 1.2000 peg,. and was  stuck in a tight 1.2100/10 spread all morning.

Most European bourses have posted small gains of around 0.5%.

Gold and WTI crude  oil have also been biding their time, in $1730-1740 and $98.80-99.40 ranges respectively.

China’s FX regulator: China to maintain C/A surplus in 2012 despite debt crisis

• Exports likely to be affected by slow global recovery this year
• International payments surplus set to fall signficantly  this year, can’t rule out risk of short-term capital outflows, but long term capital inflows likely in strong volumes

More poor Greek data…

Nov unemployment up to 20.9% from 18.2% in Oct

Dec Industrial output -11.3% y/y from -7.8% in Nov

Jan consumer inflation 2.3%y/y from 2.4% in Dec

EUR/USD’s hits sell stops down through 1.3270

Should be some support down around 1.3250 ahead of better at 1.3215/20.

Low on that run down was 1.3265