- German prelim Q2 GDP +0.1% q/q, much weaker than median forecast of +0.5%. Q1 data revised down as well, from 1.5% q/q to 1.3%
- Euro Zone Q2 GDP +0.2% q/q, slightly below median forecast +0.3% (blame the Germans)
- Swiss National Bank checking forward rates
- Swiss National Bank declines to comment on talk it is checking rates in the forward fx market
- ECB’s Liikanen; Situation in global economy has moved in alarming direction in recent weeks
- Austrian FinMin: Sceptical about eurobonds
- Dutch govt coalition party Christian Dems: Not in favour of common euro zone bond
- ECB seen buying 5 year Italian bonds
- UK July CPI flat m/m, +4.4% y/y, touch firmer than median forecasts of -0.1%, +4.3% respectively. ONS says upward pressure from higher prices for financial services, less discounting for clothes, shoes, furniture
- BOE’s King: Elevated inflation reflects VAT hike, past energy and import rises
- Imagining the Unmentionable – WSJ
- Hong Kong’s slump signals global trouble – MarketWatch
The release of much weaker than expected Q2 GDP growth in Germany has further ratcheted up concerns surrounding global growth prospects. Commodity currencies like aussie and the canadian loonie have taken a hit. Oil off. You know the gig, yada yada yada………
EUR/USD down at 1.4370 from early 1.4430 having been as low as 1.4356. Sell stops through 1.4400 were tripped through 1.4400 after the surprisingly weak German growth data. Subsequent rally attempts have been so far curtailed by decent Eastern European selling south of 1.4400.
AUD/USD down at 1.0425 from early 1.0480 having been as low as 1.0402, aussie hit by global growth concerns. Custodial sellers very notable this morning.
USD/CAD up at .9865 from early .9800.
USD/CHF effectively unchanged at .7815. Despite that EUR/CHF has seen some decent price action. The cross is down at 1.1220 from early 1.1280, having been as low as 1.1176. The cross got hit hard in the wake of the poor German GDP data (safe haven buying), but recovered somewhat on talk of SNB checking forward rates.
USD/JPY at 76.75 and cable at 1.6375 effectively unchanged on the day.
