- Fed’s Bullard: US economy is in very good shape for 2011, wild card is Middle East
- Ifo’s Sinn: Events in Libya alone are not a risk to growth
- EU’s Rehn: Interest on Irish loans is a key issue that will be discussed as part of EU comprehensive package
- Portuguese FinMin: Country’s deficit risen same as EU average. Markets are especially nervous regarding Europe
- Euro zone January inflation -0.7% m/m +2.3% y/y, very marginally weaker than median forecasts of -0.6%, +2.4% respectively
- Germany January import prices +1.5% m/m, +11.8% y/y, stronger than median forecasts of +1.0%. +11.2% respectively
- French January producer prices +0.9%, as expected
- Germany EconMin Bruederle: Euro rescue fund should not be increased. Full use of EFSF could be made by lending from fund at different rates
- China NDRC chief says govt measures to curb inflation have shown initial results
- True Finns threaten debt bailout as April election nears -Bloomberg
EUR/USD and GBP/USD have seen decent rallies this morning. Sources report that two major US banks have been suggesting that the month end dollar selling they have to do is the biggest for some months. Obviously after the strong rallies so far this morning this information has to be treated with some caution. Gotta think alot of that interest has already been executed.
EUR/USD up at 1.3840 from early 1.3760, with well-documented barrier option interest at 1.3850 still just about intact (session high 1.3848). BIS sold around the 1.3785 area putting in a temporary top in early trade. But it wasn’t long before we were rallying strongly.
Stops were tripped just above 1.3800 accelerating the move. A UK clearer was a very notable buyer above 1.3800. Model funds have also been notable buyers this morning. The model funds were also seen buying EUR/JPY, which is up at 113.20 from early 112.35, having been as high as 113.36.
Cable up at 1.6235 from early 1.6110. Stops were tripped through 1.6160 and 1.6220 accelerating the rally which has been as high as 1.6244 so far. Talk of not overly large 1.6250 barrier option interest. CTA’s were notable buyers of the GBP/JPY cross, which has advanced to 132.75 from an early 131.45 having been as high as 133.06.
USD/JPY up at 81.80 from early 81.65, the pairing no unusually somewhat sidelined. The buying of the EUR/JPY and GBP/JPY crosses will have underpinned the pairing.
Buy orders 81.50/60, stops below. Sell orders up at 82.00/10.
