- China suspends Minister-level talks with Japan over boat clash
- UK August mortgage approvals -45k, down from 47k in July and worse than median forecast 46k
- M4 money supply for August (prov) -0.2% m/m, weaker than median forecast of +0.2%. Y/Y +1.8%, weakest rate on record
- Irish Central Bank: Recent Irish spreads show lenders need to remain convinced budget on convergent path
- EU’s Rehn: Has full confidence that Ireland will act with determination to repair economy, banking system
- Irish/German 10-year govt bond yield spread hits 417 bps
- EFSF’s CEO: Central scenario is that euro zone’s emergency loan facility will not have to be used
- Moody’s UK AAA rating will withstand economic challenges
- German industrial union IG Metall says steelworkers to begin “warning” strikes on Wednesday Sept 22
- Bundesbank: German upswing has weakened after strong Q2 , but recovery trend intact
Sterling has had poor morning, seeing across the board losses. Cable down at 1.5605 from early 1.5665, while EUR/GBP up at .8395 from early .8345.
The weakness in sterling has been down, in no small part, to aggressive selling of the GBP/CHF cross by large Swiss name. The selling is said to be M&A related. Poor UK mortgage approvals for August also served to undermine.
We got as low as 1.5574 before Asian sovereign buying helped lend much-needed support.
EUR/USD marginally firmer at 1.3095 from early 1.3075. BIS came in buying early, helping lift pairing over 1.3100. We got as high as 1.3120, Middle Eastern sovereign also notable buyer, before falling back. The Middle Eastern entity was also notable buyer of AUD/USD and GBP/USD at around same time.
Stops seen through 1.3130.
USD/JPY sits unchanged at .85.65. Overnight talk had Japanese banks having left buy orders at 85.60 (Tokyo holiday) We got as low as 85.52 as Big German and UK clearer sold, but reports had more Japanese bank interest at 85.50 and we saw no further followthrough.
AUD/USD up at .9450 from early .9435, having been as high as .9469. Real money seen buying this morning. So far well-documented .9475 option barrier remains intact. Japanese bank said to be defending level.
