- Germans, Dutch and Finns reopen tricky EU bank deal - Reuters
- Irish PM says decisions taken regarding Ireland’s bank debt at June EU summit stand (put that in your pipe and smoke it you Germans, Dutch and Finns)
- Bank of Spain says available data suggest Spain’s GDP kept falling at “SIGNIFICANT RATE” in Q3
- Spanish, Italian govt bond yields climb. Spain 10 year yield hits 6%
- Singapore August industrial production -2.3% m/m, -2.2 y/y, demonstrably weaker than Reuter’s median forecasts of unchanged, +1.1% respectively
- French September consumer confidence falls to 85 from 86 in August, weaker than Reuter’s median forecast of unchanged 86
- Italian July sa retail sales fall -0.2% m/m after a +0.4% rise in June – ISTAT
- UK CBI September retail sales balance +6, up from -3 in August and pretty much in line with Reuters’ median forecast of +5
- New Zealand state pension fund sees NZ dollar significantly overvalued
- Be very careful, beloved Spain – AEP at The Telegraph
- Underlying disaster in Europe accelerating: Spain’s finances collapsing – Seeking Alpha
- Catalonia to hold election, seizing chance to force Rajoy on autonomy – Bloomberg
- The emerging headache of QE3 - Andy Xie
Depressingly little net change on the major spots and crosses. The European morning trading session is fast becoming a pain in the bottom.
EUR/USD down at 1.2860 from early 1.2875, having been as low as 1.2847. With European stocks opening sharply lower, and with periphery govt bond yields climbing, the euro came under early pressure.
But it was a depressingly familiar story and there was simply no followthrough. Prop desk buying noted around the lows. We slowly recovered only for the BIS to step in selling circa 1.2880.
USD/JPY effectively unchanged at 77.70. Buy orders seen clustered 77.50/60, sell stops below through 77.50 and 77.40.
Cable very marginally firmer at 1.6190 from early 1.6165. Selling of the EUR/GBP cross will have lent cable a little support. Cross down at .7940 from early .7963. Talk of decent interest to sell the cross lined up for Friday, related to EU’s annual payment to UK farmers.
