- Dubai World says reached formal agreement with over 99% of creditors to restructure approx $24.9 of liabilities
- Aide to Ozawa: BOJ should boost outright buying of long-term JGBs
- Japanese government keeps economic assessment unchanged. Economy picking up. Move towards self-sustaining recovery seen
- Japanese PM Kan: To make decisive steps on yen as needed. Rapid forex moves risk hurting economy
- Spanish PM: Can maintain current unemployment benefits and social progams if cuts made elsewhere
- French July industry output +0.9% m/m, better than median forecast +0.7%
- Italy July industry output +0.1% m/m, weaker than median forecast +0.5%
- UK August producer output prices unch m/m, +4.7% y/y slightly weaker vs median forecasts +0.1%, +4.8% respectively. Input prices -0.5% m/m, +8.1%, weaker than median forecasts +0.1%, +8.9% respectively
- Greek FinMin: Greek Jan-Aug state budget deficit down 32.2 y/y versus 39.5% target
- Italy Q2 GDP revised up, to +0.5% q/q, +1.3% y/y from prelim +0.4%, +1.1% respectively
Swissy has seen across the board weakness this morning. USD/CHF is up at 1.0235 from early 1.0170, EUR/CHF at 1.3030 from early 1.2890 and GBP/CHF at 1.5805 from early 1.5675.
We got reports one particular large Swiss commercial bank was in buying USD/CHF very agressively right from the get go this morning. Swissy then came under accelerated pressure when news came that Dubai World had reached aggreement with its creditors on restructuring its’ debt. Risk sentiment improved and swissy lost a chunk of its’ safe haven premium.
Large stops now said to be gathered in USD/CHF up in 1.0270/80 area.
EUR/USD up at 1.2725 from early 1.2670. BIS seen buyer down in low 1.2670’s and seller up in 1.2735/40 area. The Dubai World news has given pairing decent underpinning.
Cable up at 1.5455 from early 1.5410. Talk of large pharmaceutical company needing to buy sterling for dividend payment purposes has helped underpin.
USD/JPY down marginally at 83.95 from early 84.10 in quiet trade. More official jawboning, but no one cares.
