- ECB in buying Italian, Spanish bonds
- Trichet: ECB is in secondary debt market and plans to stay there (this wire headline was later corrected removing reference to pledge to stay in secondary market)
- ECB’s latest bond buys “not advisable” – German official
- Dutch, Luxembourg central banks opposed further ECB bond buys – Handelsblatt
- S&P official: No France, U.K. downgrade on horizon
- Bank of Korea may have sold total between $1 to $2 bln to support won Tuesday – Traders
- Japan s.a July consumer confidence index 37.0, up from 35.3 in June
- Japan FinMin Noda: Want to continue to watch fx markets closely
- Japan EconMin Yosano: Need to consider measures against strong yen, bringing in monetary and other policies
- S’Korea’s state pension fund mulls revising monthly management plan to boost domestic stock buying – Spokesman
- South Korean regulator to ban stock short selling for 3 months
- Swiss consumer sentiment -17 in Q3, sharply lower from -1 in Q2, some way lower than median forecast of -5
- German June trade surplus s.a 11.5 bln, weaker than median forecast of 13.0 bln. Exports down -1.2% m/m, imports up +0.3% m/m
- UK June industrial production unchanged on month, weaker than median forecast of +0.4%
- UK June global goods trade balance -8.873 bln, weaker than median forecast of -8.1 bln. Biggest deficit since December 2010
- European central bank must go nuclear to save Europe – AEP in The Telegraph
Choppy morning, dollar little weaker.
Market little wary about what the FOMC deliberations may bring. While few see iminent move to implement QE3, there is some anticipation we’ll see raft of dovish rhetoric.
EUR/USD up at 1.4270 from early 1.4240 having been as high as 1.4288. ECB was in buying Italian and Spanish bonds this morning, which lent support as well. China was a notable buyer early helping set the tone.
Cable up marginally at 1.6360 from early 1.6330. We did see a sell-off in the wake of crappy UK economic data (output/trade – see above), but the pairing quickly rebounded higher. In a market where safe havens are few, there are even some who perceive sterling as a safe haven. I know, what can I say.
USD/JPY down at 77.05 from early 77.25 against the ongoing backdrop of risk aversion. BOJ has stayed away. Seems they are keeping their powder dry to see what the FOMC conjures up later.
USD/CHF down at .7420 from early .7515, EUR/CHF down at 1.0585 from around 1.0705, swissy still king of the safe havens.
AUD/USD up at 1.0195 from early 1.0130. China seen buyer early this morning.
