Touched a high of  0.9940 on the equity rally, and Middle Eastern fuelled euro-dollar rise through 1.3600. Doesn’t seem to much heart in the AUD/USD move though, as stops were taken out through 0.9935, and we slip back to 0.9925.  

ECB will offer 12 month liquidity operations when situation on markets so demands Personally does not expect recession in euro zone Elsewhere Greek Development Minister: There is a lack of decisiveness in Europe which could be disasterous Europe must fight uncertainty and implement deal agreed in July We need a new debate in euro zone, [...]

EUR/USD – Bids looking firm 1.3480/90 , strong offers 1.3570/80, likely stops through 1.3585 ahead of  more offers at 1.3600/10 and 1.3625/30 (trendline resistance) GBP/USD -  Resistance/offers 1.5600/05, more towards 1.5640 and 1.5690. Bids are seen down at 1.5525/30 and 1.5485 EUR/GBP -  Resistance 0.8700/05, 0.8720 and 0.8755. Support at  0.8675 and 0.8650 AUD/USD -  [...]

Hearing from a few sources now that it’s at 1600GMT

Volume stands as it is. Doesn’t appear to be hurting the euro any. EUR/USD up at 1.3535.

FRANKFURT (MNI) – The European Central Bank Tuesday drained E156.5 billion from the banking system in a one-week liquidity-absorbing operation intended to sterilize the ECB’s purchases of Eurozone government bonds. The amount drained matched the total accumlated volume of government bonds purchased and settled by the ECB since the start of its bond buying program [...]

US must implement Basel 111 or risk heavy distortions to competitiveness Not prepared to implement further stimulus programmes Priority to rebuild confidence in Greece and  Germany will do all it can to help Greece aid is an act of partnership, friendship Urges lawmakers to back EFSF expansion Germany will make sure export surpluses will never be [...]

–UK CBI: Sep Reported Sales Balance -15% Vs -14% In Aug –UK CBI: Oct Expected Sales Balance -14% Vs -7% For Sep –UK CBI: Sep Orders Volume Balance -16% VS -22% In Aug –UK CBI: Oct Expected Sales Lowest Since Jan 2010 –UK CBI: Sep Orders Vol Balance Lowest Since Sep 2009 LONDON (MNI) – [...]

UK DATA: CBI: Sep Retail Sales Fall To Lowest Since May 2010 –UK CBI: Sep Reported Sales Balance -15% Vs -14% In Aug –UK CBI: Oct Expected Sales Balance -14% Vs -7% For Sep –UK CBI: Sep Orders Volume Balance -16% VS -22% In Aug –UK CBI: Oct Expected Sales Lowest Since Jan 2010 –UK [...]

Versus -14 in August, in line with Reuters’ median forecast. Lowest since May 2010. Bring on the QE!!!

BERLIN (MNI) – Bank of England Monetary Policy Committee member Adam Posen said Tuesday that he believes the Eurozone debt crisis will be solved in the end. “I do believe the crisis will be solved, I do believe the euro will be fine,” Posen said at an economic conference in Berlin. Former ECB chief economist [...]

–Adds Comments On Financial Market Tensions FRANKFURT (MNI) – Eurozone banks must not become entirely addicted to European Central Bank funding, ECB Executive Board member Lorenzo Bini Smaghi said in an interview with The Australian Financial review released on Tuesday. Asked whether the ECB might consider making a pledge to supply unlimited liquidity for an [...]

Expects EU area authorities to approve aid payment next month and that it will be received “in time” Must cut state spending No Euro area country will default Encouraging signs from private sector participation in Greek debt swap plan Wants to pass other austerity measures before end-October

–Adds Comments On Draghi Succession, Economic Slowdown, Banks FRANKFURT (MNI) – The Eurozone is currently not in the same situation as in 2009, when the European Central Bank cut its main refinancing rate sharply towards the end of the year, ECB Executive Board member Lorenzo Bini Smaghi said in an interview published Tuesday. “What we [...]

FRANKFURT (MNI) – The Eurozone is currently not in the same situation as in 2009, when the European Central Bank cut its main refinancing rate sharply towards the end of the year, ECB Executive Board member Lorenzo Bini Smaghi said in an interview published Tuesday. “What we did over the last six months was to [...]

“I do believe the Euro will be fine”… he said speaking  in Berlin today

Sees growth of 1.5% in 2012 and 2.5% in 2013 EUR/CHF steady around 1.2200 with USD around 0.9030

FRANKFURT (MNI) – The European Central Bank on Tuesday allotted E208.3488 billion in its main seven-day refinancing operation at a fixed rate of 1.5%. The ECB satisfied all of the 159 bids received. Today’s operation resulted in a net addition of E7.1999 billion after the ECB allotted E201.1489 billion in its 7-day MRO last week. [...]

Austerity measures needed to pass from vicious to virtuous cycle Important to have a euro-Atlantic axis to take initiatives to overcome crisis