• U.S’S Geithner pressed at Eurogroup meeting for euro zone to leverage EFSF, but made no reference to TALF programme – Senior euro zone official
  • Geithner: World won’t see repeat of 2009 coordinated response, but EU, US must work closely together
  • IMF’s Zhu Min: EU debt crisis is in dangerous new phase
  • Merkel: German 2011 economic growth closer to 3% than 2.5%. There will not be euro bonds (got it!!)
  • Greek FinMin: Intention is to meet fiscal targets this year and next
  • Austrian FinMin: Confident next tranche of emergency loans to Greece will be paid out
  • Finnish FinMin: Not expecting solution for collateral issue on Friday
  • Finnish PM: Reiterates demand for Greece collateral
  • German FinMin: Asked about eurobonds, says we must solve our problems on basis of current treaties
  • IMF’s Lagarde: Believes sustainable recovery is still possible, but options narrowing
  • BOE’s Bean: Inflation will come down
  • Euro zone s.a current account for July -12.9 bln from -7.1 bln in June
  • ECB’s Paramo: Decision to adopt euro shouldn’t be taken lightly. Euro leaves little room to maneuver (offical made comments in Sofia, Bulgaria)
  • Euro zone sa current account for July -12.9 bln from -7.0 bln in June
  • EU July trade balance +4.3 bln vs +4.7 bln in July 2010, stronger than median forecast +2.0 bln

I thought we were in for one of those horribly volatile Friday sessions, but in the end things have calmed right down. Luvverly.

EUR/USD sits at 1.3810, down from early 1.3860, but some way off session low 1.3771. That nasty US investment bank clubbed the single currency early. They were helped in their endeavours by Zhu Min comment (see above), Deutsche Bank out touting move into the low 1.3000 over next few months on the back of diminishing risk appetite, and by reports Geithner hadn’t mentioned TALF programme at the Eurogroup meeting . European real money was also out in force selling early.

Poor euro zone current account data accelerated the sell-off and we got as low as 1.3771 before recovering. The heavy-duty tag team of the Giant Panda (China) and BIS were reported buying below 1.3780 and we were soon back above 1.3800. Subsequent dips below 1.3800 have met ongoing BIS buying in 1.3790s.

Cable up marginally at 1.5825 from early 1.5810, recovering well from early sell-off which reached as far as 1.5742 as comments from BOE’s Bean (see above) hit the wires. Talk of buy stops now gathered up in the 1.5830/40 area.

USD/JPY once again comatose. Sits at 77.70 unchanged on the day. If it moved, then I missed it. To be quite honest I’ve almost stop paying any attention to it.