• Swiss unadj jobless rate at 3.7% in July, sa adj 3.9%, exactly in line with median forecasts
  • Trichet: Still in period of economic contraction. Freefall is over, but must remain cautious. Lot being done to support financial system. Banks must do their job, which is to lend
  • German June trade surplus s.a 11.0 bln euros vs 10.2 bln in May, better than median forecast of 10.6 bln. Exports up +7.0% m/m, imports up +6.8%
  • German June current account surplus 13.3 bln euros vs 4.2 bln in May, much better than median forecast of 8.0 bln
  • Royal Bank of Scotland net attributable loss £1,042 mln. Worse than expected
  • French June trade deficit 4.008 bln euros, worse than median forecast of 2.9 bln deficit
  • Senior China planner: Economic recovery is not stable or balanced. China will stick with accomodative monetary policy, proactive fiscal policy
  • Italy prelim Q-2 GDP -0.5% q/q, -6.0% y/y, better than median forecasts of -0.7%, -6.1% respectively
  • UK July output prices +0.3% m/m, -1.3% y/y stronger than median forecasts of flat, -1.7% respectively. Weakest annual rate since Nov 2001.
  • UK July input prices -1.4% m/m, -12.2% y/y, weaker than median forecasts of -0.8%, -10.9% respectively. Weakest annual rate since September 1986
  • Personal insolvencies in England/Wales 33,073 in Q-2 2009, up 27.4% y/y. Company liquidations England/Wales 5,055 in Q-2 2009, up 39.1% y/y – UK Govt
  • German June industry output -0.1% m/m, worse than median forecast of +0.5%. But May’s data revised upwards, to +4.3% m/m from initial +3.7%
  • OECD June leading indicator for OECD area rises to 95.7 from 94.5 in June

When all said and done slow session as the market awaits this afternoon’s US jobs report. Sterling has seen some weakness, although it’s not overly marked. Cable is down at 1.6735 from an early 1.6770, while EUR/GBP is up at .8580 from around .8560.

Sterling is still being weighed down by yesterday’s surprise BOE QE extension. Poor H-1 numbers from Royal Bank of Scotland have hardly helped matters (see above)

Cable slipped to a session low 1.6719 when stops just below 1.6740 were triggered before partail recovery.

EUR/GBP reached a session high .8593 driven by strong buying from a large hedge fund. Touted sell orders up at .8590/00 have so far held the line and we’re presently back at .8580.

EUR/USD unchanged at 1.4360. Early selling bottomed out at 1.4341, ahead of well-touted buy orders at 1.4330. Sell orders noted at 1.4380/00.

USD/JPY saw some slippage from an early 95.35 reaching session low 95.06 before recovery, presently at 95.25. Sources had noted buy orders at 95.00/20 and they just about absorbed the sell interest. Sell orders noted up at 95.80 through 96.00. Buy stops gathering just above 96.20. Barrier option interest seen at 96.00 and 96.50.