- German August wholesale prices +0.7% m/m, -8.3% y/y vs -0.5%, -10.6% in July
- “I think it is healthy to have a variety of different reserve -type currencies- David Dollar, US Treasury Emissary in Beijing
- Shanghai share index up 2.2% after strong Chinese economic data
- Ukraine central bank deputy chairman Savchenko quits. Criticises central bank policy
- Italy July industrial output +1.0% m/m, stronger than median forecast of +0.4%
- Russia’s central bank would like to diversify reserves, add 2-3 new currencies (didn’t specify). Still keeps 1/3 of reserves in US treasuries – Deputy Chairman Ulyukayev
- UK August PPI input prices +2.2 m/m, -7.5% y/y, stronger than median forecasts of +1.0%, -8.4% respectively, m/m rate highest since June 2008. Output prices +0.2% m/m, -0.4% y/y versus median forecasts +0.3%, -0.5%
When all said and done, not a whole lot of change this morning.
EUR/USD at 1.4595 from early 1.4605. Early rally floundered at session high 1.4627 amid talk of sovereign selling interest. China was a notable seller up there. That prompted a bout of profit taking on USD shorts , which to be honest hasn’t ever looked like putting too much pressure on EUR/USD.
USD/JPY down at 90.90 from early 91.20. Well-touted sell stops below 91.00 were triggered and we went as low at 90.69 where the BIS stepped in and bought.
USD/CHF little changed at 1.0370. Early pressure bottomed out at 1.0349 where the BIS is rumoured (we couldn’t get confirmation) to have stepped in buying. Sounds totally feasible though, what with EUR/CHF trading below 1.5150 (presently at 1.5145) and with the USD/CHF sell-off in danger of getting out of control.
Cable at 1.6690 little changed on the day, having started off around 1.6700.