Eurozone inflation situation is more stable, liquidity more important than rates ECB borrowing costs extremely cheap, inflation appears stable and  not far from ECB objectives Greek insolvency shouldn’t be scenario, situation moving in the right direction Spain and Italy proposals for consolidation should be enough to get them back to fiscal sustainability EUR/USD pressing higher around [...]

–Adds Manufacturing, Construction, Retail/Wholesale and Services Sep MNI analysts survey Aug Jul median range ———————————————————————— Business sentiment: 107.5 106.3 104.0 – 108.9 108.7 112.8 Current conditions 117.9 115.5 115.0 – 118.1 118.1 121.3 Six-month outlook: 98.0 97.1 95.0 – 101.1 100.0 104.9 – FRANKFURT (MNI) – Business morale in Germany fell in September to its [...]

After a fall from the 0.8752 highs in Asia to  0.8652 in Europe earlier. Recent push up on the back of dovish comments from MPC’s Broadbent  ran out of steam at 0.8698/99 . Nearby resistance is at 0.8705, 0.8730 and 0.8750, with support  at 0.8650/55, 0.8630 and 0.8590 EUR/GBP’s around 0.8686

Sep MNI analysts survey Aug Jul median range ———————————————————————— Business sentiment: 107.5 106.3 104.0 – 108.9 108.7 112.8 Current conditions 117.9 115.5 115.0 – 118.1 118.1 121.3 Six-month outlook: 98.0 97.1 95.0 – 101.1 100.0 104.9 – FRANKFURT (MNI) – Business morale in Germany fell in September to its lowest level since June 2010, with [...]

–BOE Broadbent: Global Environment ‘Clearly Disinflationary’ –BOE Broadbent: Global Risks Dominating Any Stg Price Effects –BOE Broadbent: Inflation Expectations ‘Pretty Well Anchored’ –BOE Broadbent: Denies MPC Took Part In Currency Wars LONDON (MNI) – Bank of England Monetary Policy Committee member Ben Broadbent said the most important thing for policy today is that the international [...]

International environment “clearly disinflationary” Sterling’s real exchange rate will have to remain weak for some time to come Credibility of UK inflation-targeting regime looks “relatively robust”, but cannot be taken for granted Higher inflation uncomfortable, but little evidence of second-round effects in wages or rise in mid-term inflation expectations

Talk of some stops now building in the 1.5505/10 area before  offers from retail names up at 1.5530/40. Also some murmurs of HSBC dividend related buying giving the cable a firmer tone. We’re around 1.5482  

Last German IFO  led rally stuttered into offers 1.3445/50. A break up here points to 1.3485 and then  1.3560. Bids are  seen at the 1.3360 which i gather is a fibonacci retracement level of the 1.2865-1.4940 move. Below here there’s further support  at 1.3280 and 1.3150 Euro’s around 1.3442

Does not see a recession yet, firms still have a buffer Expects cooling in global economy, industrial producers should shift down a gear In manufacturing sector situation has cooled German industries are still planning to hire workers ECB will likely cut interest rate towards 1%, not clear over what timeframe

Not as bad as Reuters’ median forecast of 106.5. EUR/USD firmer at 1.3440. Current conditions index 117.9, better than Reuters’ median forecast of 116.0 Expectations index 98.0, better than Reuters’ median forecast of 97.5

Sometimes I find myself just smiling. Do not exclude further downward revision of ECB staff forecasts Greek insolvency not view of the ECB ECB should not further expand its non-standard measure toolkit

Business climate expected 106.5 from previous 108.7; current assessment expected 115.7 from previous 118.1; expectations expected 97.3 from previous 100.1 For those with an interest in matters sterling, we’ve got MPC member Broadbent up at 08:30 GMT.

BERLIN (MNI) – German Chancellor Angela Merkel’s CDU/CSU-FDP government will not depend on the opposition to get its bill on the reform of the European Financial Stability Facility (EFSF) through parliament this week, a senior lawmaker said Monday. “I’m confident that we will have a majority of our own,” Volker Wissing, a deputy parliamentary leader [...]

Comments made in interview with Market News International. Wild expectations about ECB rate cut show some people have lost direction, ECB has one needle in compass Certain number of non-standard measure options on table Will do what is needed to ensure markets function well ECB working assumption on Greek default clear, unchanged Acting on July [...]

Down at $1.549. NYM light crude now off two and a half bucks. Trading in precious metals, commodities making forex look like a vicars’ tea party.

BERLIN (MNI) – A German lawyer wants to take European Central Bank President Jean-Claude Trichet to a European Court for ordering the ECB’s purchases of sovereign EMU government bonds, German daily Die Welt reported Monday. Business lawyer Markus Kerber argues that the bond purchases violate EU treaties, Die Welt wrote. Kerber told the paper that [...]

Does not see unified European economic government in near term, but need to make euro work

At this juncture “may” seems a strange word to use.  Maybe something got lost in translation.

BERLIN (MNI) – EU Monetary Affairs Commissioner Olli Rehn in a newspaper interview published Monday warned that a disorderly insolvency of Greece would have grave consequences for the rest of Europe. “It would be difficult to contain a contagion,” Rehn told German daily Die Welt. Still, the Commissioner said he expected that Greece would not [...]

DAX futures off -0.7%, CAC 40 futures off -1.2%. Against the risk off backdrop dollar continues to do well, EUR/USD down at 1.3375.