- Japan’s MOF’s Ikeda: Will take decisive steps against rapid currency moves. BOJ should not rule out interest rate cut to zero pct
- Ex BOJ board member Mizuno: Counterproductive if Japan doesn’t act on its words
- Japan ruling party powerbroker Ozawa has meeting with PM Kan. Will go ahead with challenge for party leadership. Kan says he agreed with Ozawa to work together regardless of leadership race
- Italy business morale rises to 100.5 from 98.3 in July. Highest since May 2008
- German August s.a. jobless total -17k (vs median forecast -20k) Unemployment rate 7.6%, as expected
- Euro zone August inflation estimated at 1.6% y/y. July unemployment 10%, both as expected
- Italy s.a June retail sales +0.3% m/m, +0.5% y/y, stronger than median forecasts of +0.1%, -0.5% respectively
- UK inflation expectations for year ahead rise to 2.9% in August from 2.7% in July
- UK July mortgage approvals 48,722 vs 48,562 in June, better than median forecast of 46,500
We’ve had movement for sure, but it’s felt rather pedestrian. Maybe it’s just me? Possibly. Morning started with risk most definitely off and the situation has slowly improved throughout the morning, with European stocks managing to pare their early losses.
EUR/USD up at 1.2690 from early 1.2655. Inbetween we got a low as 1.2626 as European stocks swooned early. But well-noted buy orders at 1.2600/20 weren’t tested and we gradually improved as stocks cut their losses. So far though, euro bulls haven’t been able to take out sell orders up at 1.2690/00.
USD/JPY up at 84.50 from early 84.25. Option barriers noted at 84.00 and 83.50, and protection of the former helped limit early slippage to session low 84.06. Buying from major Swiss name reported in late morning trade. Sell orders noted 84.50 through 84.80 have proved durable upside barrier so far.
Cable down at 1.5410 from early 1.5460. Usual month end buying of EUR/GBP has helped pressure cable, but buy orders down at 1.5380/00 soaked up early pressure. Session low 1.5396. Subsequent Middle Eastern sovereign buying has helped the pairing just about hold above 1.5400.
EUR/GBP up at 8235 from early .8180.
