- Bundesbank says rumour of Weidmann resignation “utter garbage”
- Bank of Japan makes boldest attempt yet to lift economy - Reuters
- ZEW German economic sentiment index for January 31.5, demonstrably stronger than Reuters’ median forecast of 12.0. Up sharply from 6.9 in December. Highest read since May 2010
- ZEW: Economic perspectives for Germany have brightened up on 6 month horizon
- ZEW economist: Good chance that Bundesbank will revise economic growth outlook for 2013 upwards
- Deutsche Bank said to be asked by Bafin to simulate split - Bloomberg
- BOJ’s Shirakawa: Want to reach 2% inflation target as soon as possible
- More Shirakawa: Considerable effort required to meet 2% inflation target
- Japanese FinMin Aso: Calls on BOJ to achieve inflation target quickly
- Japan PM Abe: Strongly hopes BOJ takes bold monetary easing to achieve 2% inflation as soon as possible
- ECB’s Asmussen: Disorderly developments in Cyprus could undermine recent (2012) progress made in stabilizing the euro zone
- UK December PSNB ex financial sector interventions £15.419 bln, slightly worse than median forecast £15.2 bln
- UK CBI January manufacturing order book balance falls from -20 from -12 in December
- Spanish PM Rajoy orders audit of his party’s accounts - WSJ
- Britain becomes Germany’s biggest trade partner as Berlin-London pact deepens – AEP at The Telegraph
My head hurts.
Certainly enough volatility this morning. EUR/USD sits all but unchanged at 1.3352 from the 1.3343 which greeted me. Inbetween though we’ve been as high as 1.3372 initially, followed by a swallow dive to session low 1.3267, followed by sharp recovery back to opening levels. Anyone need a neckbrace for those whiplash injuries?
US investment bank notable buyer early aiding slow grind higher. BIS sold around 1.3365 helping cap the ascent. We slipped back slightly, all very mundane with me bitching and moaning about the need for a big tape bomb to liven things up. Be careful what you wish for Davies.
A combination of factors suddenly combined to send the single currency into virtual freefall. European stocks were hit hard at the same time led by Germanys’ DAX and Italy’s FTSE MIB. Shares in Italy’s Banca Monte dei Paschi were suspended amid reports of a large loss linked to derivatives, there was talk of a German bank having come out with a profit warning, reports Bafin has asked two German banks to simulate a split based on proposal by the Liikanen group (see Bloomberg report above) and oh yes…..a rumour that Buba head honcho Jens Weidmann had resigned………………………..again.
The speed of the sell-off was frighteningly quick and the subsequent recovery almost as quick as the Bundesbank moved to swiftly quosh the Weidmann resignation rumour. I think it was at least the third time I’ve heard that rumour. We were quickly back above 1.3300 and a much better than expected German January ZEW survey (see above) consoldated the recovery.
USD/JPY down at 88.75 from early 89.10. Shall we call that a buy the rumour, sell the fact response to the BOJ action. Yer why not, it’ll do
Cable fractionally firmer at 1.5865 from early 1.5855. Early reports at Forexlive had buy orders clustered down at 1.5800/20 and those reports proved to be right on the money as sterling recovered from an early swoon down around 1.5810. How good are we????? Asian sovereign buying noted around the lows.
GET ME OUTTA HERE!!!
