- Obama nominates Bernanke for second term as Fed Chairman
- German Q-2 GDP (final) +0.3%, -7.1% y/y, unchanged from provisional read, as expected
- Shanghai share index ends down 2.6%, bounces off days low
- Swiss non-farm payrolls fall to 3.945 mln in Q-2, in line with median forecast of 3.956 mln
- UK mortgage approvals for house purchase 38,181 in July, up from 35.564 inJune, in line with median forecast of 37,800.
- UK July net mortgage lending +£1.6 bln from +£2.2 bln in June, smallest rise since October 2000
- German construction orders fall 2.1% m/m in June, falling for second month in a row
This session one best forgotten. Summer doldrums. Everyone seems to be on holiday.
When all said and done not much in the way of real change. Marginal sterling weakness probably main feature.
EUR/USD having started around 1.4305 is presently at 1.4295. Inbetween we’ve been down to session low 1.4254. Talk of UK clearer selling on behalf of Asian sovereign early, as Chinese stocks got hit hard. However they recovered a fair amount of their losses into the close, which helped EUR/USD steady. Talk of 1.4300 option expiries.
USD/GBP down at 1.6375 from early 1.6425. Stops triggered just below 1.6400 and 1.6375 as Chinese stocks swooned. We reached a session low 1.6342 before recovery. However that recovery has been unable to reclaim the ground above 1.6400, which doesn’t bode all that well for the pairing.
EUR/GBP up at .8725 from early .8710. Talk of sell orders lined up at .8740/50 protectiing .8750 barrier option so far capping rally. Probably buy stops parked just above. Sentiment seems to be pretty bullish this cross.
USD/JPY at 94.10 effectively unchanged on day. Talk of Y94.00 and 94.50 option expiries today helping limit scope of price activity. Talk of sell orders lined up from 94.50 up through 95.00.
