• German PPI (Feb) -0.5% m/m, +0.9% y/y. Weaker than expected (vs median forecasts of -0.2% and +1.3% respectively)
• German Fin Min monthy report: German economic contraction likely accelerated in Q-1 09
• German MP Otto Bernhardt: Euro-zone has a plan to rescue members at risk of bankruptcy. Says reserve fund on standby at the ECB. Ireland and Greece in worst positions
• Irish Foreign Minister: Euro-zone rescue package not discussed by finance ministers at summit, says “we have to be careful about rumours doing the rounds.”
• Greek Fin Min: Greece in no need of euro-zone rescue plan
• ECB: Reported information on financial rescue plan “is for the ECB untrue”
• INSEE: French growth forecasts cut. Q-1 2009 probably saw economy contract -1.5% q/q
• Euro-zone industrial output (Jan) -3.5% m/m, -17.3% y/y (vs median forecasts -4.0% and 15.5% respectively)
• Quite a busy morning. USD came under accelerated general pressure early, just to turnaround and rebound sharply. The situation hasn’t been helped by bizarre developments regarding a euro-zone financial rescue plan, with a fund said by a German MP to be on standby at the ECB. Only thing is ECB doesn’t appear to know anything about it. German MP said Ireland and then Greece two countries most in need of help. Greece responded by saying they don’t need any help, thank you very much. Irish meanwhile said nothing about a rescue package had been discussed at recent finance ministers summit. The Irish admit to serious problems, but fully intend to sort them out for themselves.
• Meanwhile Germans and French busy downgrading their growth (or lack of growth) forecasts. German PPI and euro zone industrial production data weaker than expected.
• Market seems to be consolidating at present, USD seeing bouts of short-covering into weekend. That said, sentiment toward greenback still seems to be pretty much negative