- Trichet: European banks must strengthen balance sheets, improve resistance
- ZEW institute Sept German economic sentiment -43.3, down from -37.6 in August, but not quite as bad as Reuters’ median forecast of -45.0
- Greece says news conference with EU/IMF inspectors to be held at 17:00 GMT Tuesday
- Greek govt denies report it is considering holding referendum on euro membership – Spokesman (reference to Greek newspaper report touting as much)
- Berlusconi: S&P move appears to be influenced by political consideration (reference to overnight Italy downgrade)
- S&P: Italy’s ratings assessment is based on detailed analysis, economy, not driven by political bias
- Explosion in centre of Turkish capital Ankara. Car bomb. Fatalities
- Swiss govt sees 2011 growth at +1.9%, down from previous +2.1%
- German August PPI -0.3% m/m, +5.5% y/y, weaker than median forecasts of flat, +5.8% respectively
- Slovak govt party SAS chief: Will not change its negative view of new EFSF deal
- China state bank suspends fx swaps trading with some European banks
European stocks made ground this morning against a risk-on backdrop. NYM light crude Oct contract up about three quarters of a buck.
EUR/USD up at 1.3685 from early 1.3610, having been as high as 1.3718. Middle Eastern sovereign buying seen early getting the ball rolling. As European stocks improved, so EUR/USD headed higher. Real money and macro funds were seen covering short possies (no doubt a little nervy re proximity of the 2 day FOMC meet.)
Reports also came in that Greece had duly paid coupon payments which were due today, which aided the single currency’s cause.
Eventually strong buying by a large US commercial bank helped lift us over 1.3700, although decent selling by both large US and European corporates has slowed the ascent. Talk now of sell orders clustered up at 1.3720/30, buy stops just above there.
Cable up at 1.5700 from early 1.5675, having been as high as 1.5733 so far. Talk of “sharp” names lying in wait on the offer around 1.5750. Guess time will tell just how “sharp” they are.
USD/JPY unchanged at 76.48. Talk of buy orders down around 76.25, stops through 76.10. Sell orders clustered 77.00/10, buy stops through 77.15.
AUD/USD up at 1.0270 from early 1.0200, having been as high as 1.0305. Talk now of buy stops through 1.0310.
