BRUSSELS (MNI) – European Commission President Jose Manuel Barroso Wednesday reiterated his support for strengthening Europe’s bailout fund, the European Financial Stability Facility (EFSF), and he declared that Greece will not leave the Eurozone. “The EFSF and the ESM (European Stability Mechanism) need to be stronger and more flexible,” Barroso argued to a plenary session [...]

–BOE FPC: Some Bank Capital Raising Could Worsen Markets, Wider Economy –BOE FPC: Banks Capital Build Up Shouldn’t Constrain Lending London (MNI) – The Bank of England’s Financial Policy Committee has warned banks against raising further capital if it adds to market instability and has urged them not to constrain lending. Regulators have previously repeatedly [...]

On EBS.  Semi-decent, not exactly huge, 200 mln plus.  Helping lend single currency some support for now. We’re at 1.3605 having briefly dipped below 1.3600. UPDATE:   JUST BEING TOLD IT’S BIS ON BID AT 1.3595.

BRUSSELS (MNI) – European Commission President Jose Manuel Barroso Wednesday threw his support behind the creation of bonds issued jointly by the member states of the euro area, commonly referred to as Eurobonds. Eurobonds are “the next step towards deeper economic integration,” he told the plenary session of the European Parliament in Strasbourg. However, they [...]

Being told of sell stops now down through 1.5615  (Asian lows 1.5616) , after some fairly heavy selling seen in the 1.5640/50 from London names GBP/USD’s around 1.5624

Heard from a couple of sources that the offers are fairly reasonable  at 0.9930/35, as AUD/USD slips back under 0.9900 to the low 0.9880′s.  Bid’s  are now appearing down here, but more major technical support is seen around 0.9865.

–BOE: Q3 Corporate Credit Available Net 3.9% vs 4.1% in Q2 –BOE: Q3 Corporate Credit Available Next 3m Net 2.4% vs 3.4% Q2 –BOE: Q3 Secured Household Credit Available Net 8.4% vs 2.9% Q2 –BOE Q3 Secured Household Credit Available Next 3m 6.9% vs -1.9% Q2 London (MNI) – Household credit availability increased in the [...]

Hessen CPI September: +0.3% m/m, +2.3% y/y August: -0.2% m/m, +1.9% y/y — Pan-German CPI MNI median forecast: -0.1% m/m, +2.5% y/y MNI forecast range: -0.3% to +0.1% m/m August: flat m/m, +2.4% y/y — BERLIN (MNI) – Consumer prices in the German state of Hessen rose 0.3% in September, bringing the annual inflation rate [...]

Up, down, up , down. The very poor Italian business confidence data seems to have helped take the wind out of the single currency’s sails for the time being. From session high 1.3638 we’re back down at 1.3610.  Real money is reportedly selling into the latest rally.

Talk of some macro buying interest in this cross around the 104.00 level, with the source telling me the name is usually “directional” (i.e normally correct)….We’ll see.. Some resistance around the Asian highs of 104.40/45 with stronger resistance towards yesterday’s NY high of 104.96 On the downside there are sell stops  through 103.70

Brandenburg CPI September: -0.1% m/m, +2.3% y/y August: -0.1% m/m, +2.1% y/y — Pan-German CPI MNI median forecast: -0.1% m/m, +2.5% y/y MNI forecast range: -0.3% to +0.1% m/m August: -0.1% m/m, +2.1% y/y — BERLIN (MNI) – Consumer prices in the German state of Brandenburg fell 0.1% in September, but the annual inflation rate [...]

ITALY DATA: September business confidence fell to 94.5 from 98.6 in August on worsening output and order expectations, with inventory levels also down from the previous month, ISTAT said. –ISTAT’s September SA index fell to the lowest level since December 2010 (93.4), ISTAT said, posting marked decline from 98.6 in August (revised from 99.9). –September [...]

Some way below 98.6 in August and Reuters’ median forecast of 98.1. Lowest read since January 2010. Elsewhere, Bank of Spain says Q3 data shows sluggish economic activity.

Why did I open my big fat gob. EUR/USD has suddenly sprung into life, back above 1.3600, presently at 1.3620. Barroso’s comments seemed to have helped. Risk isn’t quite as off as it was, go figure. Talk of sell orders clustered now up at 1.3650/70. I’d hazard a guess buy stops parked just above there.

As well as social and economic crisis, we face crisis of confidence If we do not move forward with more integration we will face fragmentation Greece is and will remain a member of the euro area European Commission is considering a wider guarantee mechanism to help Greek banks lend again (interesting) Trust that ECB will [...]

EUR/USD sits at 1.3575, all but unchanged on the day. We await the Finnish parliament vote on the amendment to the  EFSF framework, which is up at 11:00 GMT. Widely expected to be carried/passed.

Saxony CPI September: +0.3% m/m, +2.6% y/y August: -0.1% m/m, +2.4% y/y — Pan-German CPI MNI median forecast: -0.1% m/m, +2.5% y/y MNI forecast range: -0.3% to +0.1% m/m August: flat m/m, +2.4% y/y — BERLIN (MNI) – Consumer prices in the eastern German state of Saxony rose 0.3% in September, lifting the annual inflation [...]

LONDON (MNI) – Any decision on whether to restart the Bank of England’s programme of quantitative easing is “finely balanced,” a senior policy maker said Wednesday, as the economic outlook darkened over the summer months. In an interview with the Times, Monetary Policy Committee member David Miles said: “The case for [more QE] has become [...]

–Monetary and Fiscal Policies Should Be Focused on Jobs By Denny Gulino WASHINGTON (MNI) – Boston Federal Reserve Bank President Eric Rosengren Wednesday advised his counterparts across the Atlantic not to underestimate the damage that can be done by falling house prices, despite that sector’s small share of GDP. Meanwhile, he said, “Monetary and fiscal [...]

Decline in spread between mortgage, treasury yield after Fed’s operation twist “very significant” Fed should consider taking action if spreads between mortgage, treasury yields widen significantly Important to examine housing policies that might be changed to reduce impediments to monetary policy Housing sector woes impairing recovery Guess we can place Mr Rosengren in the dove [...]