- Swiss National Bank active in one month forward market – Traders (SNB not available for comment)
- ECB’s Schaeuble: Euro remains a stable currency, markets have confidence in euro
- ECB’s Nowotny; Fears euro zone states won’t adopt EFSF revisions by end October
- German FinMin monthly report: Public deficit in 2011 will be 1.5% of GDP
- Slovak FinMin: Does not know whether euro zone can survive in current composition in medium or long-term
- Moody’s: Bilateral agreements on collateral would be credit negative for Greece and other bailout countries
- Relax, central banks can still save us – AEP at The Telegraph
- Global markets move, but Merkel won’t – Irwin Stelzer at the WSJ
- UK household finances are ‘worse than during height of recession’
Rather pedestrian session. General risk appetite has seen some improvement and this has driven currencies.
EUR/USD up at 1.4415 from early 1.4370. We dipped early reaching session low 1.4345. BIS was seen notable buyer below 1.4350 and as European stocks rallied strongly so EUR/USD recovered.
Much talk of ACB sell interest up at 1.4390/00 and indeed there was quite a skirmish at said level. Eventually decent middle eastern sovereign buying forced a breach to the topside and we’ve been as high as 1.4425 so far.
USD/CHF up marginally at .7860 from early .7845, supported by decent buying of the EUR/CHF cross against the improved risk backdrop. The cross is up at 1.1330 from early 1.1270. The SNB widely reported to have been in one month forward market this morning and this has helped undermine swissy a little.
Cable at 1.6485 and USD/JPY at 76.80 both effectively unchanged on the day in subdued trade.
AUD/USD up at 1.0445 from early 1.0405 as general sentiment has improved.
