- UBS says trader of invesmtent bank has caused loss of estimated $2 bln.
- SNB holds target range for 3-month swiss franc libor unchanged at 0.00-0.25%. Aiming to defend 1.2000 fx goal. Prepared to buy foreign currency in unlimited quantities
- EU task force head in Athens: Greek Ministers well-prepared for owrking with taskforce. Greece wants to help itself. Cannot imagine becoming administrator for Greece
- Senior German CDU lawmaker Meister; Greek exit from euro would be “absolutely fatal” for Greece. Relaxed about troika report as Greece is doing upmost to deliver on targets. Must ratify EFSF and ESM as soon as possible to regain credibility
- Greek FinMin: Economy will be stuck in recession for 4th straight year in 2012
- ECB September monthly report: Focus remains on price stability over medium term
- Talk Bank of Korea sold USD/KRW near 1,119
- Earthquake shakes buildings in Tokyo – Witnesses
- French Budget Minister: French banks’ ratings are among best in euro zone
- Spanish Economy Minister: ECB has done a great job stabilizing European economy
- UK retail sales -0.2% m/m, unchanged y/y, pretty much in line with median forecasts of -0.1%, unchanged respectively
Risk on this morning. European stocks nicely higher, oil up half a buck, US treasury yields firmer etc etc. You know the gig.
Market being fed an ongoing diet of positive comments regarding Greece and it seems to be paying off (if you ignore the Greek FinMin’s late morning one about recession in 2012, but that’s a given)
EUR/USD up at 1.3800 from early 1.3710, having been as high as 1.3825. It was very much a slow grind higher, rather than a sprint. Firm European stocks helped early. Then SNB comments regarding 1.2000 lifted EUR/CHF (although it wasn’t sustained) which inturn gave EUR/USD a boost.
Eventually buy stops through 1.3785 were tripped and then aggressive buying by a UK clearer with strong Far Eastern associations helped trip further stiops through 1.3800. We got to 1.3825 before topping out amid reports of sell orders clustered from 1.3830 up to 1.3850.
USD/JPY down fractionally at 76.55 from early 76.65. Hardly worth mentioning, but for the fact it comes against the backdrop of risk on and notably firmer US treasury yields. Little surprisng, well at least it is to me. But then what the heck do I know.
Talk buy orders clustered around 76.50 and more around 76.25.
Cable up marginally at 1.5815 from early 1.5760 against the risk on backdrop, having been as high as 1.5839. Talk of sell orders clustered 1.5840/50.
AUD/USD up at 1.0285 from early 1.0190 as risk appetite has improved. Far Eastern sovereign buying noted.