Shame. Italian 10 year govt bond yield rises 10 bps to 5.85% before BTP auction results.

The ECB monthly report in its entirety. Read, digest, and we’ll be asking questions later……

At 1.0140 mentioned earlier, but some bids sitting ahead of them from earlier sellers above 1.0220 which included some sovereign names. On the topside now talk of stops building on a move back up through 1.0240. Recent sell-off found a  base at 1.0140 for now, and we’re now sitting back up at 1.0150

–Aug Global Goods Trade Deficit Stg7.768bn vs Stg8.154bn Jul –Aug Non-EU Goods Trade Deficit Stg4.867bn vs Stg4.651bn Jul –Aug Total Trade Deficit Stg1.877bn vs Stg2.273bn Jul –Aug Global Trade Gap Ex-oil/erratics Stg7.645bn vs Stg8.003bn Jul –Aug EU-27 Trade Deficit Stg2.901bn vs Stg3.503bn Jul LONDON (MNI) – The UK’s goods trade deficit narrowed in August as [...]

vs July revised -£8.154 bln, better than expected (-£8.8bln), but Cable little moved on the release . August non-EU goods -£4.867 bln vs July rev -£4.651 bln (exp-£5.3 bln)

Apparently responsible for the move up from 77.03 to 77.20… Not sure “momentum” is the right word though when talking about this flatliner of a currency pair. Resistance starts from 77.50 and 77.85, support at 76.90 and 76.50

Headlines over Reuters.   Application of PSI to one euro state may put at risk financial stability of whole currency area PSI could damage reputation of euro internationally, could add to fx volatility (oh bollox) EUR/USD down at 1.3755, now among the aforementioned buy orders at 1.3740/60.

Euro just slid down through Asian lows to  1.3762 ahead of the earlier mentioned bid zone from 1.3760 down to 1.3740. Below here are stops set on a break of 1.3730

Happy Dayz  CPI to stay above 2% in coming months, fall thereafter Outlook still subject to high uncertainty Essential to maintain price stability over medium term All euro area govts must take frontloaded fiscal action Risks to price developments are broadly balanced

Got that one right pumpkin…. Italian bond auction results up at 09:10 GMT.  Can’t wait…….

Our duty to hold Greek bonds has cost us 400 mln euros this year (my heart bleeds) We cannot allow ourselves to have rescue funds above a certain size, public and courts would not allow it Must start ensuring that banks can get long-term capital on markets, at the moment that is close to impossible [...]

Ahhh, ain’t that nice…… UPDATE:   Wow, these Chinese have some clout.  1.3795 offered…….change…….1.3815 bid 

‘A downgrade of Britain’s top-notch credit rating is potentially unavoidable because the country can not grow out of its debts, a leading asset manager has claimed.” Oh-eh. Cable sits at 1.5745, effectively unchanged on the day.

We’re at 1.0182 from around 1.0195 when I sat down. Reports of sell stops now gathering through 1.0140.

Heather Stewart in The Guardian.

LONDON (MNI) – Although it is only a week since the Bank of England announced a stg75bln extension of its asset purchase programme, BOE deputy governor Charlie Bean has said that the Monetary Policy Committee is prepared to add to its stg275bln quantitative easing program if the economic outlook worsens. “If we need to undertake [...]

Risks for Asia are “decidedly tilted to downside” Investors could reverse their large Asia positions Asia policymakers need to be able to rapidly reverse course IMF’s Singh: China has scope to respond if global economic risks materialise China’s response would offset part of shock from global crisis Time has come for China, other export-reliant Asian [...]

Final HICP September: +0.2% m/m, +2.9% y/y (revised from +0.1%; +2.8%) August: flat m/m, +2.5% y/y Final CPI September: +0.1% m/m, +2.6% y/y (unrevised) August: flat m/m, +2.4% y/y – FRANKFURT (MNI) – German EU harmonized consumer price inflation was revised up in September to +2.9% y/y, a three-year high, while prices rose by a [...]

But sees Greece avoiding ‘full default’ Pissarides is Cypriot economist. Awarded Nobel prize in economics. EUR/USD has given a little ground in early European trade, presently at 1.3775. Reports of buy orders clustered 1.3760 to 1.3740, sell stops through 1.3730.

GERMANY DATA: The EU harmonized consumer price index was revised in September to +0.2% m/m and +2.9% y/y, up 0.1 percentage point from their respective preliminary estimates, the Federal Statistical Office reported on Thursday. In national terms, preliminary estimates of +0.1% and +2.6% for the month and year, respectively, were confirmed. – See MNI MainWire [...]