- BOE’s King: Financial markets do not believe rate of price increase will persist
- BOE’s Bean: Expects growth to resume in Q1 2011
- Market rumour: Riots in Saudi Arabia. Reports Saudi Arabia sending tanks to Bahrain
- EU document for March 11 leaders’ meeting: Euro zone should have national debt rules
- German February s.a. jobless total falls -52k to 3.069 mln, much better than median forecast of -15k
- Euro zone February final manufacturing PMI 59.0, in line with flash estimate and as expected
- Euro zone February inflation estimated at 2.4% y/y, as expected
- Euro zone January unemployment 9.9% in January vs 10.0% in December, better than median forecast of 10.0%
- UK February manufacturing PMI 61.5, pretty much in line with median forecast of 61.0
- UK January mortgage approvals 45,723, much better than median forecast of 43,000. Mortgage lending +1.801 bn, much better than median forecast +0.15 bn, highest since February 2010
- UK January consumer credit -0.333 bn, weaker than median forecast +0.14 bln, weakest since October 2009
- Swiss real Q4 GDP +0.9% q/q, +3.1% y/y, demonstrably stronger than median forecasts +0.5%, +2.8% respectively
- Swiss PMI index 63.5 in February, stronger than median forecast of 60.9
- UK Nationwide February house price data +0.3% m/m, -0.1% y/y, stronger than median forecasts -0.3%, -0.3% respectively
- China’s ForMin: China to maintain diversified investments for foreign currencies
- Italy 2010 GDP growth +1.3%, slightly better than govt target of +1.2%. 2010 deficit-GDP ratio 4.6%, better than govt target of 5.0%
Not a huge amount of net change on major spot and cross levels this morning, but it’s been a busy enough session to keep everyone on their toes.
EUR/USD sits at 1.3820, up fractionally from early 1.3810 but some way off session high 1.3854. We dipped very briefly below 1.3800 to session low 1.3784 before quickly recovering. Middle Eastern sovereign buying helped us get to session high before stalling. Large US hedge fund notable seller this morning.
Talk buy orders 1.3775/80, buy stops gathering in 1.3865/75 area.
Cable unchanged at 1.6265. Inbetween though we’ve been as high as 1.6328. The early rally took out the 1.6300 level, where talk had the top parameter of a China 1.60-1.6300 dnt in place. We tripped stops just above and spiked higher.
Reports soon circulated of sell orders in place 1.6335/50 and we did a quick about turn. The subsequent sell-off in the pairing has been accelerated by trailing stops in the 1.6280/85 area being tripped. Nasty moves, kinda cable being cable I guess.
USD/CHF down at .929o from early .9320, EUR/CHF down at 1.2835 from early 1.2870. Swissy has firmed in late morning trade, as oil spiked a buck or so on rumours of rioting in Saudi Arabia. There have also been reports of Saudi Arabia sending tanks to Bahrain to support the government there.
USD/JPY touch easier, down at 82.05 from early 82.20.
