• German MP makes new court complaint against euro plans - Reuters
  • German FinMin: Germany still ‘confident’ that court will approve ESM. Convinced ESM, fiscal pact are constitutional. Nothing has changed regarding constitutionality of ESM after MP’s complaint about ECB bond-buying.
  • Moody’s: Little new in ECB bond-buying program. ECB plan “leaves number of uncertainties.” ECB program “will not resolve the debt crisis”
  • Spanish industry minister: Spain can’t afford to pay renewable power subsidies
  • “Considerable” uncertainty over Europe crisis, lack of solution can’t be ruled out – Bank of Israel minutes from Aug 27th MPC meet (before Draghi bond plan announced)
  • BGA’s (German trade association)Boerner: Sees risk of euro zone breakup if troubled states don’t accept structural reform. Definitely does not expect recession in Germany this year. Does not see German exports failling or stagnating in this year or next
  • Euro zone sentix index improves to -23.2 in September from -30.3 in August, better than median forecast of -30.7
  • Bank of France August business climate indicator for industrial sector rises to 93 from 90 in July, better than median forecast of 89
  • Bank of France sees -0.1% decline in GDP in Q3 OF 2012, unchanged from previous estimate
  • French industrial output rises to +0.2% m/m, well above median forecast of -0.5%
  • Italy Q2 GDP revised marginally lower, to -0.8% q/q, -2.6% y/y from previous -0.7%, -2.5% respectively
  • Carthaginian terms for Italy and Spain threaten Draghi bond plan – AEP at The Telegraph
  • France’s Hollande outlines austerity goals - WSJ
  • Visiting Troika reject Eur2 bn of Greek cuts - WSJ

What’s not to like about The Bangles?

EUR/USD unchanged at 1.2780. Narrow rangebound trade. Buy orders seen clustered 1.2750/60, sell stops below there. Sell orders clustered 1.2800/20. Barrier option interest 1.2825 and 1.2850. Buy stops just above latter.

USD/JPY 8 pips firmer at 78.28. Buy orders 78.00/20 (including Kampo), sell stops through 78.00 and 77.90. Sell orders clustered up at 78.40/50.

Cable up 5 pips at 1.5995. A 5 pip change in cable tells you all you need to know about this morning’s session.