- EU Commission: There is no possibility of providing further funds to Greece unless it fulfills its commitments
- Bank of England leaves rates, QE unchanged. As widely expected
- Talk Swiss National Bank checking forwards
- Estonia govt approves EU leaders’ July agreements strengthening EFSF powers – Govt statement
- Swiss unadj jobless rate 2.8% in August, in line with Reuters’ median forecast. Seas adj 3.0%, slightly above median forecast of 2.9%.
- German July trade surplus s.a 10.1 bln vs 11.5 bln in June and weaker than median forecast of 11.2 bln. Exports down -1.8% m/m, imports down -0.3% m/m. (global slowdown innit)
- French July trade deficit -6.5 bln, weaker than median forecast of -5.9 bln
- Finland PM: World economy in exceptionally fragile state
- German FinMin: Expects govt to win majority on EFSF vote from own ranks
- German FinMin: Can help indebted countries, but euro zone member states must resolve underlying reasons
- Japan’s EconMin: Expects BOJ to take appropriate, bold policy steps to support the economy
Funny old morning. Swissy weak, sterling strong.
USD/CHF up at .8650 from early .8590, EUR/CHF up at 1.2145 from early 1.2080, having been as high as 1.2178. Two continental banks said to have been aggressive buyers of the cross early, not doubt enboldened by the Swiss National Banks’ ability to hold the 1.2000 line of late. Talk the central bank was in checking forward rates again this morning.
Cable up at 1.6020 from early 1.5945, having been as high as 1.6050. It’s been choppy fare though. The pairing did come under heavy early pressure, reaching session low 1.5915 before rebounding. Talk of 1.5900 barrier interest being defended.
The pairing also got a decent lift in the wake of the BOE rate announcement. From around 1.5965/75 it rallied all the way to 1.6050. Guess some players thought they might see additional QE today and got wrong-footed. How anyone with half a brain could really have expected QE today is beyond me, but hey that’s life.
EUR/GBP down at .8765 from early .8820. UK clearer with strong Scottish associations strong seller above .8800.
EUR/USD down at 1.4045 from early 1.4065 in generally sluggish trade. Well-documented sell orders up at 1.4090/00 have capped the topside.
USD/JPY marginally easier at 77.20 from early 77.35. Who’d be a USD/JPY trader. You’d die of bloody boredom. Talk of buy orders clustered at 77.00 and more 76.50/60. Sell orders clustered 77.50/60, buy stops through 77.75.