- German August PPI flat m/m, +3.2% y/y, weaker than median forecasts +0.3%, +3.0% respectively
- Japan MOF Gyohten: Japan should take steps to prevent blow to economy if forex moves undesireable. Hard to stabilise forex levels with intervention alone
- ECB’s Weber: Too early to say financial crisis over
- Part of UK’s Manchester airport closed down due to bomb scare
- OECD’s Gurria: Countries may have to delay fiscal consolidation if economic weakness prolonged. Economic recovery in OECD region in H2 weaker than expected
- EBRD’s Mirow: Hungary needs to rebuild trust with international investors. Needs to phase out foreign exchange lending, replace with local currency lending
After what has been a hectic event-filled week, trading this morning has been uninspired. The major pairings are showing little or no net change on the day.
EUR/USD sits at 1.3130, almost to the pip where it started out. We rallied early, but euro bulls couldn’t take out well-reported sell orders up at 1.3150/60 (session high 1.3159). Middle Eastern sell interest was noticeable at the highs. Talk of 1.3170 barrier interest, stops just above there.
USD/JPY at 85.80 all but unchanged. Japanese exporter sell orders were noted at 85.85/95 and they capped half-hearted rally attempt (session high 85.92) Talk of stops gathered above 86.00. Also talk BOJ sitting down at 85.60.
Cable at 1.5685 all but unchanged on the day. US investment bank notable buyer early. We tripped stops through 1.5720 but little follow-through as rally fizzled out at 1.5728. It’s been a slow orderly drift lower since.
AUD/USD very marginaly firmer at .9450 from early .9435. US investment bank seen in cable also notable buyer of AUD/USD. We got as high as .9468 before selling defending well-touted .9475 dnt interest capped the rally. Conflicting reports as to who is protecting said interest. Large Japanese bank or China?, with former favoured.
