- German September industry output -1.8% m/m, demonstrably weaker than Reuter’s median forecast of -0.5%. German EconMin says fourth quarter industrial production will be weighed down by weak orders (that’ll do it)
- Commerzbank could cut 5,000-6,000 jobs as part of multi-billion cost-cut plans
- Spanish September industrial production falls -7.0% y/y, down sharply from revised -2.5% in August (prev -3.2%), much weaker than median forecast of -3.6%. 13th consecutive month of falling production, lowest since April
- Eurozone September retail sales -0.2% m/m, -0.8% y/y vs median forecasts -0.1%, -1.0% respectively
- Fitch: No fiscal honeymoon for President Obama. US could lose their AAA rating if fiscal issues remain unresolved
- Roubini reiterates euro overvalued by more than 20% (well I think he said something very similar yesterday)
- German economic “wise men” forecast German GDP growth of +0.8% in 2012 and 2013
- Japan FinMin Jojima: Ready to intervene in FX markets if necessary (yawn)
- BOJ’s Shirakawa: BOJ sees ending deflation crucial task
- Swiss October CPI +0.1% m/m, -0.2% y/y, weaker than Reuter’s median forecasts +0.3%, -0.1% respectively
- Francois Hollande lurches Right in historic u-turn to save French economy
- London’s financial sector to cut 13,000 jobs next year – Telegraph
For most of the European morning session its been eerily quiet. Main move came late morning when really poor German industry output data saw EUR/USD fall from 1.2843 to session low 1.2817 before steadying.
We’re presently down at 1.2822 from early 1.2860. BIS was notable seller early circa 1.2860/70, and that helped put a cap on the pairings’ fledgling rally.
Sell stops seen gathered through 1.2800. Sell orders clustered 1.2880/00, buy stops above there.
USD/JPY marginally firmer at 80.28 from early 80.05. This depite sharp fall in US treasury yields post Obama re-election. Benchmark 10 year treasury yield down at 1.6700% from close Tuesday in North America up aorund 1.7489%. If you’re a USD/JPY bull you should be feeling a little relieved round about now. Maybe the lack of sell-off is telling us something.
Cable marginally easier at 1.5990 from early 1.6030. Asian central bank selling notable this morning.
