- White House to shelve plans to build missile shield defense system in Czech Republic and Poland
- Shanghai share index up 2%
- Volker sees “long slog” for US economy
- BOJ’s Shirakawa: Yen rise will lower prices in near-term, may support economy in long run
- Russia FinMin: Current oil price overheated, expects correction in 3-6 months
- UK August retail sales flat m/m, +2.1% y/y, weaker than median expectations of +0.1%, +2.7% respectively
- Germany’s Merkel: Does not think the danger of protectionism is yet over
- Euro zone July trade balance +12.6 bln euros, demonstrably higher than median forecast of +6.4 bln. Exports down hefty 19% y/y, while imports off huge 30%
- Bk of Israel’s Fisher: Israel has “technically emerged from recession” But still not in good economic situation
- UK CBI manufacturing order book balance -48 in September from -54 in August, better than median forecast of -50
Muddly sort of morning.
EUR/USD at 1.4730 effectively unchanged. Inbetween however we’ve had a little sojourn north to knock out a few barrier options at 1.4750 and 1.4760, the rally fizzling out once the work was done.
We’ve very slowly, and I mean slowly, drifted lower. There have been unsubstantiated (well I can’t substantiate them) rumours that a US investment house and a large German bank have put out EUR/USD sell recommendations.
More barrier options now touted up at 1.4775 and 1.4800.
USD/JPY a little lower, presently down at 90.85 from an early 91.05. We’ve actually been as low as 90.53 in the wake of comments from BOJ’s Shirakawa (see above) Japanese authorities sure seem keen to have a firm yen.
Cable has put on half a cent, presently at 1.6540 from an early 1.6490, having at one point made it all the way up to 1.6568. The EUR/GBP cross has run into a bout of selling (profit-taking) after it’s recent sharp run higher and this has lent cable some support.
Talk of sell orders up at .8940/50 and then again at .8990/00, ahead of touted .9000 barrier option interest. Talk also of buy orders lined up down at .8890.