- Swiss consumer sentiment index -30 points in Q4 VS -42 in Q3
- Shanghai share index up 0.9%, 5th straight day of gains
- Swiss October CPI +0.6% m/m, -0.8% y/y, as expected
- UK October new car registrations +31.6% y/y – SMMI
- UK September industrial production +1.6% m/m, -10.3% y/y vs median forecasts +1.2%, -10.3% respectively. m/m rise best since July 2002
- Euro zone September retail sales -0.7% m/m, -3.6% y/y, appreciably weaker than median forecasts of +0.2%, -2.4% y/y
- Bank of England leaves rates unchanged, extends QE £25 bln
Main move of the day has been some improvement in sterling’s fortunes. The move came as the BOE left rates unchanged and increased QE by a conservative £25 bln. Given subsequent price action it’s fair to say the QE increase had already been fully discounted and there’s evident relief it wasn’t more. Cable is up at 1.6595 from an early 1.6515, while EUR/GBP is down at .8945 from around .8980.
EUR/USD at 1.4840 is effectively unchanged on the day. The pairing came under some pressure posting a session low 1.4810, where well-touted buy orders at 1.4000/10 held the line. Russia and hedge funds were noted sellers on the way down.
There was also talk that a big Asian sovereign (most probably China) had sold EUR/USD from around the overnight highs up at 1.4882.
Some mutterings the BIS had stepped in and bought around the 1.4810 low, but these were unconfirmed.
USD/JPY at 90.35 is hardly changed having come under a little pressure in early trading. A UK clearer is said to have been a decent seller, but buy orders ahead of psychological 90.00 managed to hold the line and we slowly recovered to where we started. Stops said to be gathered below 90.00.
AUD/USD firmer, up at .9090 from an early .9055. Talk of sovereign buying interest down at 9030.
