- Twenty German legal experts unanimous in Reuter’s poll that top court will not block ESM and fiscal pact
- German FinMin: Main reason for crisis in euro zone was ‘too much liquidity’
- ECB’s Asmussen: Governments must agree to hard reforms for ECB to buy bonds. Conditionality is key element
- Swiss unadj jobless rate 2.8% in August, as expected. Seasonally adjusted rate 2.9%, also as expected
- SNB forex reserves at 418.430 bln in August, up from revised 408.605 bln in July (prev 406.45 bln)
- Spain July adjusted industrial output -5.4% y/y, not as bad as Reuter’s median forecast of -5.9%, but still crap. 11th consecutive fall
- UK July manufacturing output +3.2% m/m, demonstrably stronger than Reuter’s median forecast of +2.0%. Strongest read since July 2002. Industrial production +2.9% m/m, demionstrably stronger than Reuter’s median forecast of +1.5%. Strongest read since February 1987
- UK August producer output prices +0.5% m/m, +2.2% y/y
- German July industry output +1.3% m/m, demonstrably stronger than Reuter’s median forecast of flat
- China approves plan to build new roads to boost economy
Markets giving ECB’s bond buying plan the thumbs up. Euro zone periphery govt bond yields have come off, especially in the longer end. European stocks have seen some nice gains, with Italy’s FTSE MIB leading the way up a hefty +2.2%.
Euro firmer across the board. EUR/USD up at 1.2690 from early 1.2630 having been as high as 1.2695.
EUR/CHF has seen active trading, presently at 1.2145 from early 1.2050. Infamous US investment bank, large US commercial bank and the major Swiss commercial bank notable early buyers helping push the cross over 1.2100. Later Japanese names seen buying decent amounts.
Cable unchanged at 1.5935. Did initally rally to session high 1.5982, but defensive selling ahead of well-touted 1.6000 barrier option interest and strong EUR/GBP buying helped push the pairing back down. The cross is up at .7960 from early .7925, having been as high as .7974. The 100 dma now looms at .7977. Talk of barrier option interest up at the psycholocical .8000 level.
USD/JPY quiet, up a mere 8 pips at 78.98.
