- Emerging countries in talks on IMF boost – FT
- South African FinMin: IMF and EFSF anti-crisis fund don’t have sufficient resources at this time. BRIC involvement depends on how EFSF leveraged
- Germany’s Merkel: Euro crisis caused by a combination of overly high debt and lack of competitiveness
- ECB again buying Italian and Spanish bonds this morning
- ECB’s Liikanen: Global economic recovery threatening to come to a halt
Slight risk on. European stocks, oil and gold all firmer. Some hopes the G20 will come up with something. We live in hope.
EUR/USD up at 1.3795 from early 1.3770. It’s been choppy fare in thinned out Friday markets. Sovereign interest has been notable on both sides of the market this morning, helping contain price action.
Leveraged names, Chinese investors (not Giant Panda) seen buying in early trade taking us above 1.3800 only for “2nd tier” sovereigns to bat us quickly back below said level.
We then proceeded lower as European stocks got off to an iffy start. BIS stepped in buying around 1.3775 and Middle Eastern sovereigns below there, and as European stocks rebounded so EUR/USD recovered its’ poise. Reports circulated that the ECB was in buying Italian and Spanish bonds and this, as usual, provided further support.
We rallied strongly back over 1.3800 to session high 1.3827 before more sovereign name selling batted the pairing back lower. All in all, not hugely inspired.
Cable up very marginally at 1.5765 from early 1.5750 having been as high as 1.5795 at one stage. Talk of barrier option interest at 1.5800 and defence of said interest has been enough to cap the topside for now.
USD/JPY very marginally firmer at 77.00 from early 76.85, underpinned by risk on backdrop. EUR/JPY up at 106.30 from early 105.90,
AUD/USD up at 1.0240 from early 1.0195, again underpinned by risk on backdrop.
Pleasant weekend y’all. Have a good week next week. I’ll be thinking of you while I enjoy a weeks well-earned rest.
