European morning wrap: We ain’t accomplishing much here
- Germany votes in favour of enhancing euro zone’s bailout fund. 523 for, 85 against, 3 abstentions
- Merkel didn’t need to rely on opposition votes as 315 coalition lawmakers voted in favour
- Greek PM will likely travel to Paris Friday to discuss debt crisis with Sarkozy – Reuters’ source
- German FinMin: Speculation about changes to EFSF beyond 211 bln euros for German contribution is indecent
- Dutch Dep ForMin Knapen: Not in favour of introduction of financial transaction tax. Should be introduced globally rather than just Europe
- BOJ’s Shirakawa: Global financial markets unstable reflecting Europe’s fiscal problems
- BOE’s Dale: Global economic slowdown looks more persistent now
- UK Nationwide house prices +0.1% m/m, -0.3% y/y, slightly better than median forecasts flat,-0.5% respectively
- UK August mortgage approvals 52,410 vs 49,644 in July, better than median forecast of 49,500
- German Sept s.a. jobless total -26,000 to 2.922 mln, better than Reuters’ median forecast of -8,000
- EU Sept economic sentiment falls to 95.0 from 98.4 in August, weaker than median forecast of 96.0
- Magnitude 5.6 earthquake jolts Fukushima prefrecture in Northeastern Japan. No tsunami warning
- CIC Chairman: China concerned about unravelling of euro zone debt situation
- EFSF leverage: Euro zone’s most dangerous delusion – WSJ
- Debt crunch threatens China and emerging markets – AEP at The Telegraph
Very little net change this morning on the major spots and crosses.
EUR/USD down at 1.3610 from early 1.3625, the pairing having given up early gains which stretched to 1.3678. An early rally (no doubt in anticipation of German yes vote) was extended by better than expected German jobless data, which helped trip stops through 1.3650 (or 1.3655 depending on who you talked to)
Notorious (so unfair) US investment bank and UK clearer with strong far eastern ties were seen selling around the highs. One source opined that they thought China could have been behind some of the selling, but we never did get direct confirmation.
German parliament duly voted in favour of enhancing euro zone’s bailout fund, but the news did little to help the single currency. Rather what we got was a classic “buy the rumour, sell the fact price action” as EUR/USD added to its losses.
Cable sits at 1.5640, effectively unchanged on the day.
USD/JPY sits at 76.60, effectively unchanged on the day.
USD/CHF sits at .8960, effectively unchanged on the day.
Kinda gives one the general picture. Busy going nowhere fast at the moment.