• German July trade balance 12.7 bln from 12.4 bln in June, slightly lower than median forecast of 12.9 bln. Exports -1.5% m/m, imports -2.2%
  • Greek deals hidden from EU probed as 400% yield gap shows doubt – Bloomberg
  • China bank regulator: Potential systemic domestic banking risks cannot be overlooked. Stress tests must be improved
  • Bank of France industry sentiment index 101 in August, as expected
  • French July trade balance -4.180 bln, slightly lower than median forecast of -4.0 bln
  • Vodaphone sells China mobile stake
  • UK Halifax house price index +0.2% m/m, +4.6% in three months to August vs year ago, much stronger than median forecasts of -0.5%, +4.4% respectively
  • UK July industrial production +0.3% m/m +1.9% y/y, pretty much as expected
  • Swedish Q2 GDP revised up to +1.9% q/q +4.6% y/y from previous +1.2%, +3.7% respectively. Swedish crown rises vs euro. Strongest since mid 2008
  • ECB’s Weber: Fears of double dip recession., deflation unfounded. Steps taken by euro periphery are big enough to end discussions of state insolvency
  • Japan PM candidate Ozawa: Limited room for BOJ policy to tackle yen rise
  • Greek Q2 GDP revised lower. Down to -1.8% q/q, -3.7% y/y from flash estimates -1.5%, -3.5% respectively

Cable up at 1.5455 from early 1.5375 having been to session high 1.5494. News Vodaphone has sold its stake in China Mobile and anticipation of positive flows from repatriation of proceeds (see above), and much stronger than expected Halifax house price data, helped underpin sterling today.

EUR/GBP down at .8222 from early .8260, having been down to .8202. US investment house seen notable buyer around the lows.

EUR/USD sits at 1.2708, unchanged on day. Inbetween we’ve been up to 1.2733 and as low as 1.2660. Talk Swiss National bank sold around the highs, while BIS seen buying around the lows. Pairing consolidating after recent sell-off.

USD/JPY up at 83.82 from early 83.45. Had rumour BOJ was in checking rates. What a hoot.

AUD/USD up at .9173 from early .9120. China seen buyer today.