- UK Nationwide August house price index +1.6% m/m, -2.7% y/y, better than median forecasts of +0.5%, -3.9% respectively
- German Gfk September consumer sentiment indicator up at 3.7 from 3.4 in August, exactly as expected. Strongest read in 15 months
- Shanghai share index down 0.7% in quieter trade
- Italy August consumer morale rises to 111.8 from 107.5 in July, better than median forecast of 108.0 and best read since March 2007
- Euro zone M3 annual growth 3.0%, weaker than median forecast of 3.2%
- Euro zone leading economic index for July up 1.6% at 97.4 – Conference Board
- UK preliminary Q-2 business investment -10.4% q/q, -18.4% y/y
- UK CBI retail sales balance -16 in August versus -15 in July, worse than median forecast of -13
A fairly quiet session. Further sterling weakness is probably main feature.
EUR/USD is up very marginally. Sits at 1.4255 from an early 1.4240. The BIS stepped in and sold at 1.4270/80, capping the rally at 1.4276. Talk of 1.4275 option expiries today. Buy orders seen down at 1.4200/20, sell stops gathered below 1.4200.
Cable presently down at 1.6185 having opened up around 1.6215, having been as low as 1.6177. The day started off in decent shape with the pairing ralling to sit at 1.6235 just before the release of Nationwide housep rice data. The numbers came out much better than expected and cable failed to garner any real lift. That was the warning signal for what was to come.
Cable hasn’t been helped by weaker than expected Q-2 business investment and CBI August retail sales data (see above) Also weighing is the continued march higher in the EUR/GBP cross.
EUR/GBP having started out at .8780 is up at .8810 having been as high as .8817. Talk of positive M&A flows thought to be tied to the Diageo interest in LVMH’s Moet Hennessy.
AUD/USD has recovered after yesterday’s mauling. Having started out .8275 the pairing is presently up at .8315. SOurces note decent buy interest out of the Middle East.
USD/JPY sits at 93.65, effectively unchanged on the day, once again sidelined.
