Needs structural reforms Important to operate enlarged EFSF as soon as possible Itlay not necessarily involved with EFSF Economic forecasts key to next interest rate decisionMust make current Eurozone workable, A twin track euro makes no sense

Driven by VAT hikes in utilities as part of Portugal’s austerity drive

No that’s not Hendrix……, but Shozaburo Jimi, Minister of Financial services.

No let up for this beleaguered pairing which has been knocked down again to 77.32 earlier. Some sell stops did go through as we broke down through 77.50, but talk is that  there’s a lot of bids to chew through before the 77.00 level gets broken and large stops  are triggered. Bounces are still “dead-cat”/non [...]

LONDON (MNI) — Construction output growth was revised higher in the third quarter, although the upward revision alone would not be enough to push up GDP growth over the same period. Figures released by National Statistics Friday showed that seasonally adjusted construction output fell 0.2% on the quarter in Q3, compared with the originally estimated [...]

–Oct Producer Output Prices unch. m/m; +5.7% y/y –Oct Core Output Prices -0.1% m/m; 3.4% y/y –Oct Producer Input Prices -0.8% m/m; +14.1% y/y LONDON (MNI) – Output price inflation appears to have peaked, as prices of chemicals and electrical and optical products dropped in October, figures released by National Statistics showed Friday. Factory gate [...]

UK DATA: Q3 Construction Output Revised Up; No GDP Impact ———————————————————————— Construction output growth was revised higher in the third quarter, although the upward revision alone would not be enough to push up GDP growth over the same period. Figures released by National Statistics Friday showed that seasonally adjusted construction output fell 0.2% on the [...]

UK DATA: Oct Producer Output Prices unch. m/m; +5.7% y/y –Oct Core Output Prices -0.1% m/m; 3.4% y/y –Oct Producer Input Prices -0.8% m/m; +14.1% y/y ———————————————————————— Factory gate prices were unchanged on the month and up 5.7% on the year. The outturn was a little below the median forecast for a rise of 0.1% [...]

Oct  Producer Input prices  -0.8  % m/m,   +14.1 % y/y  (exp 14.6) , Core output prices -0.1%m/m, +3.4% y/y (exp +3.7) Q3 construction output -0.2% q/q, with ONS  saying no material impact on Q3 GDP Cable off some 15 pips to 1.5897 on the weaker numbers.

Germany will do everything it can to preserve the Euro Rejects idea that ECB has “unlimited firepower”

Apparently real money buyers just broke up through the tech res at yesterday’s high but ran into an Asian central bank in the 1.0170′s. Now hearing macro offers sitting up around 1.0200 We,ve just plugged a day’s high of 1.0177 and sit around 1.0170 now  

Seems to be rather heavy on the back of some ongoing EUR/AUD buying which has seen a move of over 200 pips higher this week. AUD/USD  has sovereign bids between 1.0050/1.0100, sorry i cant be more exact there Large sell stops just  under 1.0050, but apparently large bids 0.9990/00 from exporters. On the topside should [...]

EUR/USD back up again after  attempting to run down through 1.3600, but reports that ECB is back in the market buying BTP’s through the SMP gives euro a lift back through 1.3650  to 1.3669. May well be some stops through 1.3670, but have heard for sure there are some up through 1.3710

On the austerity package and a vote is expected today, i’m informed by a contact in Asia.

Apparently leveraged and model accounts behind the dawn raid which took out stops through 0.8560 to a high of  0.85715. Cable’s slipped on the move to 1.5910 but key support is now down at 1.5850/60 with bids at 1.5905/10  to fill first.

Heading up to the NY highs of yesterday of 1.3653, with offers 1.3650/60 so far stemming the rally from 1.3615 which took out some stops through 1.3640 to 1.3649.  Buy stops also sit up at 1.3710. We’re sitting back at 1.3633

Just had a fall to 77.38  as Europe opens and talk on the street is that yesterday’s stops under 77.50 have been matched by a raft of bids ahead of 77.00 possibly/likely semi-official (Kampo) . Recent comments from Fin Min Azumi that Japan stands alone in intervention  not helping… NB. Some talk in Asia that BOJ [...]

TOKYO (MNI) – In light of the global economic slowdown, economists have revised down further their forecasts for Japan’s economic growth next year, but still predict consumer prices will stop falling in about two years, the latest monthly survey by the Cabinet Office’s Economic Planning Association released on Friday showed. The association polled 42 economists [...]

Dont have  median on this one, but doesn’t look good. Having said that , EUR/SEK doing very little on the release around 9.0900

In case you hadn’t seen it (released late last night) … EU commission sees  a rocky road ahead for the UK