- ECB allots 529.5 bln in 1092 day LTRO, pretty much in line with median forecast of 500 bln
- French January consumer spending -0.4% m/m, weaker than Reuter’s median forecast of +0.2%. On plus side, December’s data revised upward to -0.2% from previous -0.7%
- Swiss KOF leading growth indicator -0.12 in February, in line with median forecast. January’s data revised upward to -15 from previous -17
- German February s.a unemployment change flat, slightly weaker than median forecast of -5k. Unemployment rate 6.8%, unchanged from upwardly revised 6.8% in January (prev 6.7%) Worse than median forecast of 6.7%
- Euro zone January inflation -0.8% m/m, +2.6% y/y, pretty much in line with median forecasts +0.8%, +2.7% respectively
- Irish EU treaty vote threatens chaos – AEP in The Telegraph
ECB’s LTRO allotted 529.5 bln euros, pretty much in line with median forecast of 500 bln and as such we’ve not seen a very big market reaction.
EUR/USD is down at 1.3435 from early 1.3465, real money having been seen selling the EUR/AUD cross in the wake of the LTRO announcement helping pressure EUR/USD.
China subsequently popped up buying in the 1.3425/30 area helping slow the decline.
Some sell stops now gathering through 1.3400. On topside, decent-sized sell interest noted just ahead of 1.3500 barrier interest (talk of sell orders in 3 billion region) Buy stops seen through 1.3510.
USD/JPY up marginally at 80.50 from early 80.35. Talk in market decent-sized AUD/JPY and CAD/JPY buy orders lined up for this afternoon’s 16:00 GMT fix. Will be helping underpin USD/JPY.
GBP/USD up very marginally at 1.5935 from early 1.5920. Talk of buy stops now through 1.5965 before barrier option interest at the psychological 1.6000. Who wud have thunk it?