- ECB: Spanish bank deposits down -1.1% on month in August. Lowest level since 2008
- Euro zone economic sentiment falls to 85.0 in September from 86.1 in August, weaker than Reuters’ median forecast of 86.1
- German Sept sa jobless total +9k t0 2.911 mln, pretty much in line with Reuters’ median forecast of +10k. Jobless rate unchanged at 6.8%, as expected
- China Dep Gov PBOC Lui: Country’s economic situation generally sound
- China Dep Gov PBOC Lui: China govt concerned about global economic slowdown
- PBOC advisor Chen: Yuan should be part of a currency triangle. Dollar, euro and yuan should be the future of FX. Yuan likely to be fully convertible and China’s capital account to be opened by 2020
- PBOC advisor Chen: RRR and rates may be cut further if external demand slows
- China’s rating agency Dagong: Q3 to exacerbate US sovereign credit risk
- BOE’s Fisher: Expects very strong UK GDP number in Q3
- UK Q2 final GDP -0.4% q/q -0.5% y.y, the q/q data revised up marginally from previous -0.5%
- Debt-hit eurozone faces a ‘lost decade’ of economic pain and surging unemployment – Ernst & Young
I know, I’m just wishing my life away.
Strange sort of morning. Been busy in spurts, but overall not a heck of alot of change.
Euro has looked a little vulnerable, but not overly so. We’re down marginally at 1.2858 from early 1.2877. Inbetween we’ve been up to 1.2900 and down as low as 1.2845.
The pairing rallied early, garnering support from huge surge in Chinese stocks. The Shanghai composite index finished up 2.6% on the day. Talk had the Chinese Securities Regulatory Commission about to announce new IPO reform but this was quickly denied. There was also a rumour that China is set to announce a huge stimulus package after China National Day on October 1.
Anyways, we topped out at 1.2900 and it was downhill from there. News Spanish bank deposits continue to tank and weaker than expected euro zone economic sentiment data didn’t help matters. There’s also some nervousness ahead of the Spanish budget announcement later today and the release of independent Spanish bank stress tests tomorrow.
Downside, buy orders seen clustered 1.2825/40, sell stops through 1.2820. Topside, sell orders clustered 1.2900/15, buy stops through 1.2920.
Cable up marginally at 1.6202 from early 1.6183. EUR/GBP down at .7936 from early .7956, having been as low as .7923. Obviously all week there’s been focus on tomorrows sell interest in the cross, related to the EU’s payment to UK farmers. One UK clearer is said to have the order tomorrow. This morning another UK clearer, this one with strong Asian ties, hit the cross hard, reportedly for half a yard of euros.
USD/JPY unchanged at 77.68. Sell stops seen gathered through 77.50 and 77.40.
AUD/USD fractionally firmer at 1.0406 from early 1.0398. The cross is down at 1.2355 from early 1.2383, having been as low as 1.2343 at one stage. Notable selling of the cross out of the Middle East this morning.
