Noteworthy News:
- UK CPI Numbers better than expected 3.0% y/y Vs 2.6%.
- Swiss Retail Sales better than expected 3.6% y/y Vs 2.0%.
- German ZEW much better than expected -5.8 Vs -26.5.
- European Trade Balance better than expected -0.3B Vs -5.2B.
- Asian equity markets lower again.
- The EUR/USD under pressure over concerns relating to Eastern European Banking exposures.
- Economic Data Table.
Foreign Exchange News:
- EUR/USD headed lower in early morning London trading testing support at 1.2600 where there is rumoured to be option protection once more. This saw the usual suspects all along for the ride with the GBP, AUD and JPY all setting new lows for the day. Solid support at 1.2600 plus better than expected data out of Europe and the UK saw the EUR regain a small amount of ground against the USD but lose agaist the CHF, GBP and JPY.
- Ranges: EURUSD 1.2600/1.2805, USDJPY 91.54/92.76, GBPUSD 1.4122/1.4311, AUDUSD 0.6372/0.6533, EURCHF 1.4759/1.4866, EURGBP 0.8835/0.8864, EURJPY 115.60/117.45.
- The USDCAD was a star peformer this morning and looks set for a test of 1.2770 in the coming sessions.
Equity Markets:
- European equity markets were all down more than 2% in morning trading as the banking sectors weighs on the market.
- The FTSE is down 92 pts or 2.2% with the Fiancials shouldering most of the blame but all sectors are in the red this morning.
- The DAX is down 110 pts or 2.51% with Materials and Industrials the main drag on the German market with the other sectors not far behind.
- The CAC is down 75 pts or 2.5% with Consumer Cyclicas, Finance and Industrial sectors all hit hard.
