- German FinMin: To push for Europe-wide ban on naked short selling of stocks, govt bonds and CDS
- French prelim Q2 GDP flat q/q, weaker than median forecast of +0.3%
- French July EU harmonised CPI -0.5% m/m, +2.1% y/y, weaker than median forecasts -0.3%, +2.3% respectively
- French FinMin: Q2 GDP figure not a surprise after strong Q1
- Merkel may not make changes to the EFSF by end Sept as originally planned – German press
- Portugal FinMin: Troika review of economy gone well
- EU/IMF mission to Portugal: Bailout plan on good path
- IMF’s Thomsen: Good news Portugal govt has anticiapted some economic measures
- Euro zone June industrial production down -0.7% m/m, +2.9% y/y, weaker than median forecasts of flat, +4.4% respectively
- Norway Wealth Fund CEO: Share the concern about the long-term fiscal situation in the US
Another rollercoaster ride this morning. All the fun of the bloody fair. European stock futures pointed to a decent start but no sooner were we out of the traps than stocks headed south. Little pause and then we were rebounding strongly. Happy Dayz.
EUR/USD up at 1.4230 from early 1.4185. After a uncertain start EUR/USD eventually swooned as European stocks nose-dived. Asian sovereign buy orders which had been noted at 1.4175/80 were brushed aside.
We got as low as 1.4150 where more ACB buying was noted, and then as stocks rebounded so EUR/USD headed quickly back higher. Aggressive buying of the EUR/CHF cross helped fuel the rally and we were soon back above 1.4200.
Good news from the Troika review of Portugal was also supportive.
USD/CHF up at .7705 from early .7590. EUR/CHF up at 1.0960 from early 1.0775, having been as high as 1.1047 in torrid trade. US investment bank a very notable buyer of the cross this morning. We’ve also had rumours, not surprising, that the SNB has been covertly selling their currency.
USD/JPY slightly lower at 76.60 from early 76.75 in quiet trade.
Cable up at 1.6265 from early 1.6165, underpinned by improving European stocks.
