- German FinMin: Greece must meet conditions for further aid
- German auction results
- Portuguese auction results
- UK Nationwide January house prices -0.2% m/m, +0.6% y/y, weaker than Reuter’s median forecasts of unchanged, +1.4% respectively
- UK January manufacturing PMI 52.1, up from 49.7 in December and better than median forecast of 50.0
- Swiss January PMI 47.3, some way weaker than median forecast of 51.4
EUR/USD up at 1.3122 from early 1.3065. Inbetween we’ve had more nasty choppy trade. First we sold off to session low around 1.3023 only to rebound strongly to reach 1.3151 at one stage.
BIS was seen buying around the lows, only to then be seen offloading in 1.3050/55 area. As we stood at 1.3055 we were getting reports of ACB buying of cable and selling of USD/CAD. Although we didn’t get any direct confirmation of ACB selling dollar for euros, it’s probably a near certainty that they were buying EUR/USD.
Anyways we continued higher, the euro bulls bolstered by accelerated European stock gains and narrowing periphery/German bond yield spreads.
Real money sell orders were noted up at 1.3085/95 and more up at 1.3110/20, but these were taken out without too much trouble as whispers once again circulated that a Greek PSI deal was to be announced “real soon.”
Cable up at 1.5775 from early 1.5750, having been as high as 1.5788. Asian central bank buying seen this morning. Barrier option interest at 1.5800 next hurdle for sterling bulls.
USD/JPY down at 76.10 from early 76.20, having been as low as 76.04. Talk of Kampo lined up on the bid at 76.00.
USD/CAD down at .9995 from early 1.0030. Asian central bank selling seen in this pairing.
