- ECB’s Weber: Period of economic freefall is over. Path to recovery is bumpy. German jobless increasing in 2010 and 2011, but does not see it over 5 million
- Japan’s FinMin Fujii: Hopes to decide 2010/2011 budget as soon as possible. Will not set spending ceiling for budget
- German Finance Ministry: Sees economic recovery continuing in Q3, but unclear if growth on stable footing. Exports on a clear upward path.
- Shanghai share index closes up 0.2%, having pared more than 3% intraday loss
- China weighs purchase of IMF gold – MNI
- Fitch sees rising public finance risks in Central Europe
- BOE’s Sentance: Latest evidence suggests UK, other major economies recovering from deep recession. Sees substantial upside risks to energy prices over coming recovery
Good start to the week for the beleaguered greenback, which has seen across the board gains. Risk appetite is on the wane with European stocks, oil lower. FTSE 100 off close to 1%, DAX 30 off 1.3%.
There is also evident caution among USD bears ahead of this Wednesdays FOMC meet and the possibility that Fed might signal winding down of Q.E.
USD/JPY has seen decent gains, up at 92.25 from early 91.50. The big spike came when stops just above 91.60 were triggered sending the pairing quickly to 92.15/20 area.
GBP/USD is down at 1.6180 from an early 1.6230. The move acclerated quickly when stops just below 1.620o were triggered sending the pairing quickly to session low 1.6135 before some recovery.
Sterling remains weak, EUR/GBP up at 9055. There will be cautiion ahead of Wednesdays BOE rate decision. Bank in it’s quarterly bulletin has said sterling’s long-run sustainable exchange rate may have fallen due to an increased focus on UK’s economic imbalances following the global crisis.
EUR/USD is down at 1.4655 from an early 1.4690. After flurry in early European trading activity in the pairing has slowed markedly. Market still seems loathed to offload the euro aggressively.