- UK Nationwide house prices for September +0.9% m/m, unchanged y/y, better than median forecasts +0.7%, -0.3% respectively. But August’s +1.6% m/m rise revised down to +1.4%
- Irish voters head to polls for a second referendum on the EU’s Lisbon treaty. Opinion polls suggest a “yes” vote, but could be close. Result not expected until Saturday afternoon
- UK construction PMI for September 46.7, weaker than median forecast of 48.1
- IMF’s Strauss Kahn: Europe’s economy may recover more slowly than others due to rigidities. View of IMF is that China yuan is undervalued
- Euro zone producer prices for August +0.4% m/m, -7.5% vs median forecasts of +0.4%, -7.6% respectively
- French Finance Minister Lagarde: Hopes US Treasury Secretary Geithner’s message on strong dollar will be heard. She says everyone needs a strong dollar
- IMF’s Lipsky: Major traded currencies not far from long-term equilibrium levels
Risk appetite continues to be on the wane, undermining the likes of sterling, aussie and canadian dollar while the japanese yen benefits.
European stocks are underwater again, FTSE off 0.8%, DAX off 0.7%, while oil has given up over a buck.
EUR/USD has been something of a bystander, sitting presently at 1.4540, effectively unchanged on the day. Given the mounting risk aversion it’s probably a little surprising it’s not at least a little lower.
Talk of buy orders at 1.4500/10 and then again at 1.4480 down through 1.4450 will be lending support.
Cable started off Ok. Indeed it rallied early and stood around 1.5925 on the release of better than expected Nationwide house price data (see above). It’s inability to rally meaningfully off the data was probably a good fore-warning of what was to come.
Soon after the pairing started to slide and wasn’t helped any by the release of disappointing construction PMI data (see above). We’re presently down at 1.5850, just above session low 1.5842.
USD/JPY down at 89.30 from an early 89.45, with the yen seeing across the board strength against the backdrop of mounting risk aversion. Talk of buy orders now lined up down at 89.00/20, with sell stops said to be gathering just below 89.00.
AUD/USD has had another bad morning, down at .8620 from an early .8695 with risk aversion taking it’s toll. Talk of some buy orders lying down at .8600.
