- Eurozone flash February composite PMI 49.7, down from January’s 50.4 and demonstrably weaker than median forecast of 50.6
- BOE minutes: MPC voted 7-2 in favour of QE £50 bln increase. Miles and Posen wanted £75 bln
- S&P cuts Panasonic rating to A- from A; outlook negative
- Australian ForMin Rudd resigns
- IMF’s Syed: China will participate in Europe rescue plan
- Dutch FinMin: Still has doubts about Greece’s implementation of new bailout programme measures
- Japan senior MOF official: Yen weakening due to BOJ’s timely easing, Greece bailout deal
- French January CPI -0.4% m/m, +2.3% y/y, weaker than median forecasts flat, +2.7% respectively
- Euro zone December industrial orders +1.9% m/m -1.7% y/y, stronger than median forecasts +0.7%, -2.8% respectively
Sterling weakness is the standout feature of this morning’s session. Cable down at 1.5715 from early 1.5790, EUR/GBP up at .8415 from around .8380. Release of latest Bank of England MPC minutes did the damage, with two members having called for £75 bln QE rather than the £50 bln we got.
EUR/USD effectively unchanged at 1.3230. We rallied early to session high 1.3264 before a succession of weak European PMI data pulled the plug on the fledgling rally.
Asian central bank buying was subsequently noted under 1.3220 and that was the downside curtailed. We remain ensconsed in well-trodden range. Sell stops seen through 1.3180 and more through 1.3165. Barrier option interest up at 1.3300, buy stops gathering through 1.3325.
USD/JPY smidgeon firmer at 80.15 from early 80.00, EUR/JPY up at 106.05 from around 105.90. Japanese life insurance companies seen buying both pairings this morning.
