Cable trying to steady after slump

Cable at 1.5035, trying to steady after most recent sell-off which extended to 1.5018 low.

Much talk of 1.5000 barrier option interest and defence of interest expected.

EUR/GBP has been as high as .9065, presently at .9057,  with a UK clearer a notable buyer.

Greek FinMin: Discussed with EU’s Rehn measures, reforms, budget changes

• Implementation of Greek stability plan has risks
• Government will do whatever it takes to cut budget, new measures if needed

For his part Rehn says

• Sure “we can overcome” this formidable crisis together
• Had very fruitful exchange of views with Greek finance minister
• Greek measures are being broadly implemented
• Additional consolidation measures are necessary
• Encourages Greece to announce additional fiscal measures in coming days
• Consolidation efforts will not be easy but respect of deficit targets essential
• Will continue to support Greece to put Greek economy back on track

Prudential confirms acquisition of AIG Asia unit

Cable slumps on the confirmation, presently at 1.5080.

• AIG will receive total consideration of $35 .5 bln
• $25.0 bln in cash, $10.5 bln in new prudential shares
• Cash components of the consideration will be financed through an underwritten rights issue

EUR/GBP trading above .9000

EUR/GBP has made further gains this morning, presently at .9012 from early .8975.

Just reading a Dow Jones piece. Barclays Capital say with EUR/GBP having breached it’s 50% fibonacci retracement at .9007, it opens way to further gains toward .9230/40.

Barclays expects stops to be tripped  on move above late December high around .9057.

Ukraine parliament to hold vote of no confidence in government of PM Tymoshenko on Wednesday- Speakers Office

If the vote succeeds Tymoshenko and her government would remain until a new cabinet replaces them.

Greek PM: Says Greece fiscal crisis is only tip of iceberg, has reached dramatic dimensions

• Calls on citizens to help out with effort despite cost
• Ready to deal with crisis with determination and courage
• Corruption, lack of rule of law, impunity root causes of crisis

UK February manufacturing PMI 56.6

Better than median forecast of 56.1.  Unchanged from upwardly revised 56.6 in January, which was strongest in 15 years.

Has helped cable build on rally, presently at 1.5175.

On the flip side, mortgage approvals in January 48,198, down from 58,223 in December, and below median forecast of 50,000.

Sell orders now seen up at 1.5190/00.

UK final January money supply +0.4% m/m, +4.9% y/y, lowest annual rate since February 2000.

EUR/USD extends rally; notable buyer seen

EUR/USD has extended it’s rally to 1.3650 at writing, with sources reporting US investment bank seen good buyer in recent trade.

Euro zone February final manufacturing PMI 54.2

Up from 52.4 in January and very slightly firmer compared to flash estimate of 54.1 and a 30-month high.

German February final manufacturing PMI 57.2

Up from 53.7 in January, slightly firmer from 57.1 flash estimate/median forecast, highest read since June 2007.