Opening Levels at 12.00am

EUR/USD 1.4704/07 USD/JPY 88.75/78 GBP/USD 1.5896/00 USD/CHF 1.0280/84 USD/CAD 1.0599/04 AUD/USD 0.8891/95 NZD/USD 0.7337/42 EUR/JPY 130.57/61 EUR/GBP 0.9248/52 GBP/JPY 141.16/24 Gold 1038.40/9.20 Oil 71.48 Dollar Index 76.525

Economic Data

  • Japanese Leading Indicators in August 82.5 from 83.5 in July in line with market expectations
  • Japanese Conicident Index in August 0.8 from 2.1 in July.
  • Swiss Unemployment rate 4.1 % in Sept from 4.0 % in July as per market expectations.
  • Euro Zone revised Q2 GDP -0.2 % q/q deom -0.1 % -4.8 % y/y from -4.7 % slightly worse than market expectations.
  • German Industrial Orders in August +1.4 % m/m from +3.1 % (revised from+3.5 %)versus market expectations of +1.2 %.

Comments

  • ECB Governing Council Member Erkki Liikanen says Euro Zone is in for a sluuggish recovery.
  • Dominique Strauss-Kahn, Managing Director of the IMF, talking in Istanbul about trying to reshape the focus of the IMF as the world turns its focus from the financial crisis to economic recovery.
  • Gold makes new historic high of 1,048-20
  • IMF Deputy Managing Director Takatoshi Kato says current yen levels broadly reflect medium term economic fundementals. Any disorderly moves could have an undesirable effect on the Japanese economy. He adds that countries with current account surpluses should move to boost domestic demand.

Currencies

  • A quiet start to the day in Euro-dollar until a Far Eastern name is reported to have taken the currency higher from 1.4695 to 1.4725. Euro moved lower on the BIS intervention in Euro-sterling to 1.4697. After that as the dollar weakened posted a high of 1.4735. Euro has since traded quietly with a soft tone around the 1.4715 – 20 area. Traded back below 1.4700 on the resyrgence of the dollar.
  • Dollar-yen was hit in early London trade triggering stops through 88.60 to a low of 88.50.A further push from out of the Far East ensued moving the dollar down to 88.30, 130.00 (against the Euro) and 140.20 (against sterling). Dollar continued to trade with a heavy tone posting a low of 88.08. In quiet trading the dollar then strengthened to 88.30. Dollar yen tested but couldn’t breach 88.00. Yen continued to strengthen finally breaking 140.00 against sterling falling to a low of 139.80 and to 129.62 against the Euro. Dollar yen tried to test 88.00 but no way through and rebounded to 88.70 rumored to be BOJ intervention, unconfirmed.
  • Sterling under pressure early on was sold off against the dollar from 1.5910 to a low of 1.5859. Against Euros rising from 0.9245 to 0.9268. Has through the course of the morning rallied aided firstly by EUR/GBP going through and then with the weakness of the dollar across the board to a high of 1.5930 for the session. As the dollar recouped some of its losses so sterling drifted off dipping below 1.5900. Back above 1.5900 on a higher sterling yen.
  • Dollar Swiss on the sidelines and apart from a UK clearer buying Euros against Swiss moving the cross from 1.5124 to 1.5137 the currency has moved in concert with the dollar-yen.

Rates as at 7.30am:- EUR/USD 1.4692/95 USD/JPY 88.85/88 GBP/USD 1.5888/92 USD/CHF 1.0305/09 USD/CAD 1.0581/85 AUD/USD 0.8903/07 NZD/USD 0.7342/46 EUR/JPY 130.48/51 GBP/JPY 141.10/16 EUR/GBP 0.9247/51 Gold 1041.60/2.40 Oil 71.06 Dollar Index 76.585 (+0.09)

Ranges

· EUR / USD 1.4691 / 1.4735

· USD / JPY 88.02 / 88.82

· GBP / USD 1.5859 / 1.5930

· USD / CHF 1.0263 / 1.0298

· AUD / USD 0.8889 / 0.8949

· NZD / USD 0.7335 / 0.7395

· EUR / GBP 0.9233 / 0.9273

· GBP / YEN 129.56 / 129.62

Stock Markets

  • Nikkei closed at 9,799-60 higher by 107-88 (+1.11 %)
  • Hang Seng closed at 21,241-59 higher by 430-06 (+2.07 %)
  • Kospi closed at 1,598-00 lower by 0-44 (-0.03 %)
  • Shanghai Composite Index closed for a National Holiday
  • FTSE 100 at 5,119-20 lower by 18-78 (-0.37 %)
  • CAC 40 at 3,764-34 lower by 5-87 (-0.16 %)
  • DAX 30 at 5,647-79 lower by 9.85 (-0.17 %)