- French Budget Minister: Euro zone is “progressing towards as deal”
- Euro zone manufacturing PMI 47.3 in October, down from 48.5 in September and weaker than median forecast of 48.0. Lowest since July 2009. Services PMI 47.2 in October, down from 48.8 in September and weaker than median forecast of 48.5. Also lowest since July 2009
- German govt spokesman: Two options still on table on EFSF leveraging, not mutually exclusive
- ECB’s Noyer: Extremely confident for euro zone accord Wednesday
- EU’s Juncker: Talks on private sector involvement in 2nd Greek aid package focus on potential losses of as much as 60% for bondholders
- Italy govt coalition partners Northern League against raising pension age. Will propose alternatives
- Euro zone August industrial new orders +1.9% m/m, +6.2% y/y, demonstrably stronger than median forecasts of +0.2%, +5.7% respectively
- Japan FinMin warns will act decisively vs excess fx moves – Reuters
- Japan business lobby head: Would like to see firm action by Japan, including sole intervention to stop yen rise
- Japan Vice FinMin: Need to take decisive measures on currencies if there are signs of specualtive moves. One-sided moves in currencies could be a problem
- Dutch business confidence -3.2 pts in October, down from -0.5 in September
- World power swings back to America – AEP at The Telegraph
European stocks opened nicely higher and those gains have all evaporated. Risk on, then not so much.
EUR/USD down at 1.3835 from early 1.3885, having been as high as 1.3953. Middle Eastern buying seen early as European stocks opened sharply firmer and buy stops helped fuel rally to session high.
Asian sovereign and BIS selling seen around the highs and as European stocks gave ground so EUR/USD came lower. Grotty euro zone PMI data certainly didn’t help the single currency’s cause, and there is obviously still much uncertainty surrounding whats going to be put on the table this coming Wednesday.
Middle Eastern buying was again noted on the dip back below 1.3900 and it lent some support, albeit temporary. Leveraged players notable sellers in the push lower.
Cable down at 1.5925 from early 1.5960, the psychological 1.6000 proving something of a brickwall on the topside. Talk of barrier option interest at said level. Whether it was ever taken out I couldn’t really tell ya.
USD/JPY touch lower at 76.05 from early 76.25, as US treasury yields have come lower in line with the declining risk appetite.
Talk of barrier option interest down at 75.75 and 75.50.