- German constitutional court backs euro rescue fund, with conditions - Reuters
- Merkel: Germany’s sending a strong signal to Europe
- ECB’s Liikanen: Outlook for global economy has deteriorated, affecting management of debt crisis
- EU’s Barroso: Greece can be saved
- Japanese FinMin Azumi: Yen’s moves since yesterday have been speculative
- German August final CPI +0.4% m/m, +2.1% y/y, m/m up marginally from prelim +0.3%
- UK August jobless claims count -15,000, better than Reuter’s median forecast of unchanged. Biggest fall since June 2010. Claimant count rate 4.8%, better than median forecast of 4.9%
- Euro zone July industrial output +0.6% m/m, -2.3% y/y, stronger than Reuter’s median forecasts flat, -3.3% respectively
The single currency has been lifted by the German constitutional court decision to back the euro rescue fund, albeit with conditions. None of the conditions really came as a shock.
EUR/USD up at 1.2930 from early 1.2860., EUR/JPY up at 100.52 from around 100.10. The euro improvement wasn’t without a little drama, the single currency swooning (EUR/USD down to 1.2815) as the judge read out the list of complaints that had been put before the court before he went on to give the verdict.
Buy stops were eventually tripped through 1.2905 accelerating the EUR/USD rally. Dutch bank, who is used as a conduit by the SNB, has been noted selling North of 1.2925 helping slow the ascent. Barrier interest now comes in at 1.2950 and 1.3000.
USD/JPY effectively unchanged at 77.80. Japanese FinMin Azumi was out jawboning (see above) but ellicited no reaction from the market. Barrier option interest noted down at 77.50.
Cable marginally firmer at 1.6105 from early 1.6075. EUR/GBP up at .8025 from early .8000, reflecting marginal improvement in the single currency.
