- European Union wins Nobel Peace Prize
- China central bank dep gov: China economic growth will be around 7.8%. For sure above official target of 7.5%
- RBA’s Stevens: Australia’s GDP growth is softening. RBA has scope to move on interest rates
- German FinMin Schaeuble: Optimistic in one year we will have overcome most uncertainty related to Europe
- Spanish FinMin: IMF views Spain and Italy as same issue
- ESM’s Regling: Euro banking union not likely by January. Likely sometime in 2013
- ECB’s Asmussen: Seeing encouraging signs that Greece’s fiscal targets for 2013 can be met
- ECB’s Visco: Government bond yields above 5% are sustainable for Italy
- Euro zone August industrial output +0.6% m/m, -2.9% y/y, stronger than Reuter’s median forecasts of -0.4%, -4.2% respectively
- Greece set to adopt 9bln euros in austerity measures next year - ekathimerini
The euro duly celebrated the European Union winning the Nobel Peace Prize
And a well-deserved pat on the back it was too.
EUR/USD is up at 1.2965 from early 1.2935, having been as high as 1.2985. EUR/JPY up at 101.70 from early 101.40 having been as high as 101.90.
The BIS was noted buying EUR/USD early, helping the rally get underway. Rumours of imminent Chinese RRR cut (the talk had an announcement due 09:15 BST) and weekend move by Spain to ask for bailout helped fuel the rally further. Unfortunately for the euro bulls the first rumour re Chinese ease ended up being cobblers.
Talk now has ‘decent’ sell orders clustered up at 1.2990/00, buy stops gathering up at 1.3010/20.
USD/JPY steady around 78.40.
Cable marginally firmer, up at 1.6060 from early 1.6035.
AUD/USD down at 1.0250 from early 1.0275. Decent buying of the EUR/AUD cross seen, up presently at 1.2650 from early 1.2590. Comments made by RBA governor Stevens at a Tokyo seminar (see above) didn’t help aussie’s cause any.
