- EU Commisssion says Greek deficit and debt figures to be revised upwards by Eurostat as expected. Revision of Greek data will cover 2006-2009 period. Eurostat to boost team in Greece due to public accounts uncertainties
- Fitch downgrades Ireland to A+ from AA-, outlook negative
- Moody’s places on review for possible downgrade long-term ratings of various Irish banks
- S.Korean authorities seen buying dollars to stem won’s strength – Dealers
- German August manufacturing orders +3.4% m/m, much stronger than median forecast of +0.8%
- Euro zone Q2 GDP confirmed at 1.0% q/q, +1.9% y/y
- Irish financial regulator: Expects banks to reform themselves. Doesn’t know if banks lied to NAMA about their property losses
A very boring morning burst into life as we approached lunchtime. EUR/USD having started around 1.3840 is presently at 1.3820, having been as high as 1.3880 and as low as 1.3800. Sovereign sell interest in the 1.3865/70 area managed to cap the pairing for most of the morning.
Eventually buying by the BIS around 1.3855/60, decent Portuguese auction result and much stronger than expected German factory orders helped lift pairing to 1.3880 high. Then in an instant the pairing was on the slide as various bad news regarding Ireland and Greece (see above) hit the wires.
We’ve been down to 1.3800, stops seen just below there. On topside 1.3900 barrier interest noted.
USD/JPY very maginally lower in slow trade, down at 83.05 from early 83.20. Talk of Kampo on the bid down around 83.00 has lent some much-needed support.
Cable little lower at 1.5885 from early 1.5910. Reserve bank of India notable seller above 1.5900.
