- Swiss Q2 IP rose 4.6% y/y from +1.4% in Q1, New orders fell1.1% y/y, after a 3.9% fall in Q1
- UK Halifax house price index -0.4% m/m, -1.2% y/y in 3 mths to Sept, below Reuters medians of flat and -0.9% respectively
- Japan’s GPIF possibly looking at diversifying into long-term alternative assets
- Spain sells Eur 3.992 of 2014, 2015 and 2017 bonds
- ‘Spain used to being helped; bailout inevitable’- Catalan President (Efxnews)
- Portuguese raise taxes at ‘critical moment’ to meet bailout conditions – Guardian
- Romney goes on the offense, forcing Obama to defend record – Washington Post
- Japan political shifts expose BOJ to demands for action: Economy- Bloomberg
- Argentinian Navy ship seized in Asset fight – FT
EUR/USD’s been holding firm from around 1.2925 this morning ahead of the BOE and ECB rate announcements, both of which are expected to remain unchanged on rates, and the BOE’s asset purchase facility left at £375 bln.
A steady grind higher met with middle eastern supply just ahead of 1.2960, and the move drifted back despite reasonably well received Spanish auctions . The move was also partially tempered by talk from various sources of possible SNB sales in the EUR/AUD which has failed to surpass the Asian session highs of 1.2680.
EUR/JPY has also floundered just above t the 200 day MA at 101.74 (high 101.82) before falling back to 101.50.
USD/JPY’s being capped in the high 78.60’s in Europe amidst talk (unsubstantiated.. i might add) of possible stealth sales from official/semi-officials supposedly unwinding some previous intervention trades. I find this a little incredible especially as other sources note bids ahead of 78.40 from real money, Swiss names and Japanese semi-officials which have so far kept the downside intact and is helping to prop up the EUR/JPY.
AUD/USD remains bogged down by the EUR/AUD, but the going is getting tough for AUD bears to break down 1.0200 again, with decent bids around the level, despite the dip to1.10183 in Asia on poor o/n retail sales data. AUD traded a 1.0205/40 range in Europe.
Cable’s been steadily climbing with the EUR/USD but ran into a wall in the mid 1.6130’s and softer Halifax Housing data has dampened enthusiasm since with the pair sitting around 1.6105/20
Gold pick up just over $9 in the session to around $1789, US Nov WTI crude is up around 70 cents to 88.75, and the majority of european bourses are down around 0.25% in an otherwise directionless market
