- German February Ifo business climate index 109.6, stronger than Reuter’s median forecast of 108.8
- Ifo economist Abberger: Does not see recession in Germany for now
- EU Commission cuts 2012 euro area growth forecast to -0.3% from previous +0.5%
- EU’s Rehn: Euro area has entered into a mild recession
- BOE’s Miles: UK is still in a very precarious situation - CNBC
- BOE’s Haldane: UK economy recovering slower than it did in 1930s
- Swedish consumer confidence -3.2 pts in February, weaker than Reuter’s median forecast of flat
- UK January mortgage approvals 38,092, stronger than 36,250 median forecast
- UK February CBI industrial trends, total orders -3 from -16 in January, better than median forecast of -13
- Spain appeals to Brussels for easier deficit reduction - The Telegraph
- EU’s Rehn: Any decision on Spanish deficit targets to be taken when all economic data has been released by Eurostat
- New push for reforms in China - WSJ
Bit more activity this morning, thank goodness. EUR/USD up at 1.3300 from early 1.3260, having reached session high 1.3342 in the wake of stronger than expected German Ifo survey (see above)
Middle Eastern sovereign buying notable early. Barrier option interest had been well-documented at 1.3300 and the mother of all battles subsequently took place just shy of said level.
Infamous US investment bank was notable seller just ahead of 1.3300 and they held out until just before the 09:00 GMT Ifo release. The release of the better than expected data saw fairly sharp gains to aforementioned session high.
Protection of next barrier interest at 1.3350 and comments from EU’s Rehn (see above) then helped take the wind out of the single currency’s sails and back we slipped.
Cable up at 1.5715 from early 1.5675. Talk of sell orders clustered 1.5730/35.
USD/JPY effectively unchanged at 80.15.
