- ECB’s Noyer: ECB is in state of strong vigilance
- UK Q2 prelim GDP +o.2q/q, +0.7% y/y
- BDF spokesman: ECB Noyer said ECB was in “strong alertness” (not vigilance)
- Japan policy makers considering solo FX intervention as increasingly viable near-term option
- BOE’s Weale: Naive to say there is no risk of UK falling back into recession
- German consumer confidence falls in August
- French consumer confidence rises in July to 86 (exp 82) vs unrevised 83 in June
- China SAFE says firms unwilling to hold FX due to Yuan appreciation expectations
- UK’s Osborne: We have a plan that has provided stability in an unstable world
- UK Chancellor Osborne: Positive news that UK economy is continuing to grow and create jobs
- Iran’s OPEC Governor Khatibi: Saudi Arabia’s oil production increase cannot prevent oil price hike
EUR/USD added to Asian gains on comments from US President Obama, taking out a barrier at 1.4500 following comments from ECB Noyer, who according to a BDF spokesman was misquoted by Dow Jones.
The usual rate hike buzzword of “strong vigilance” was relayed instead of the quoted “strong alertness”.
EUR/USD ran out of steam at 1.4523 where an Asian Central bank put a lid on proceedings which was then followed by sales from a major German name, sending euro back to 1.4460 as clarification seeped through of Noyer’s comment.
GBP/USD was slow starting bogged down by a resurgent EUR/GBP ahead of the Q2 GDP, with traders attempting to front run an expected soft number.
The release came in as expected (see above), catching out shorts with a jump of around 70 pips to 1.6414, sending the cross to earlier lows in Asia of 0.8826 from a morning’s high of 0.8883.
USD/JPY fell asleep in Europe after the exhaustive morning In Tokyo, failing to break out of a 77.97-78.22 trading range.
Early persistent sales from a UK clearer were mopped up by Japanese bids, possible semi-official. EUR/JPY followed the EUR/USD through a 112.91-113.32 range.
USD/CHF fell victim to another barrier hunt, with the 0.8000 taken out to a new historical low of 0.7997 on the EBS trading system., before attempting a weak bounce to 0.8042
AUD/USD was another victim of the barrier breakers with a high of 1.0951, and stays on a very firm stance into the Wall street opening, as commodities hold firm.
Crude oil prices have held firm throughout the session but with little reaction to the Iranian OPEC Minister’s comments (see above). WTI ranging 99.34-78 for the Sept contract.
Gold survived an earlier clump to 1608 from 1616, later rising back to 1612.
