- German August Import Prices +0.20% vs expectation +0.30%, July was -0.20%
- Spain Under Pressure to Show `Hair Shirt’ Budget as Yields Rise
- France Q2 GDP revised to +0.70% on trade balance improvement
- Barker Says Case for More BOE Stimulus Looking `Less Certain’
- German September Ifo Business Climate Index 106.80 vs expected 106.30 – the key driver of the euro move up on the unexpected positive indices results
- Italian July Retail Sales Unchanged vs expected -0.40
- Eurozone crackdown on public finances – Members of the eurozone would be forced to pay punitive fines if they did not keep their public finances under control
- Sarkozy, Unions Head for Showdown on Retirement-Age Increase
Following the Asian session the market mused over the ‘did they, didn’t they’ conundrum. Did the BOJ intervene ? Well if it wasn’t them we didn’t hear of a specific flow that caused an 80-pip rush up ! The BOJ refused to comment…. The USD/JPY retreated through the session to a low of 84.22 ( range 85.38 – 84.22)
The EUR/USD ranged 1.3287/1.3433 with the IFO indices encouragement pulling the pair from 1.3355 to above 1.3400 where it traded for most of the morning; EUR/JPY ranged 112.34/113.73
EUR/GBP started the session with sterling taking the advantage and the pair trading down to 0.8483, however the euro reversal pulled back to 0.8549, currently 0.8535
CABLE trades at 1.5715 after a high 1.5730 ( the base 1.5643)
AUD fared well through the day ranging 0.9464/0.9557 now at 0.9536
USD weakness didn’t help the USD/CHF which eventually gave out to downward pressure at 0.9800 taking out the barrier; range was 0.9785/0.9879
GOLD trades at USD 1298.65 and OIL (Light Crude – November) USD 75.31
European Bourses very quiet and mostly flat
