Euro is struggling today, especially against the US dollar. The Long-Term Refinancing Operation offered more money than expected, and that has many wondering about the stability of the European banking system. So, even though there is a measure of risk in the financial markets today, the euro isn’t feeling the good effects.

(...)
Read the rest of Euro Struggles on LTRO (129 words)

US dollar is mixed today after encouraging GDP data was released. The latest numbers for the fourth quarter of 2011 indicate that the US economy grew 3%, which is better than the 2.8% pace originally reported. The news has helped the greenback pare some of its losses against the Japanese yen, and provided some support for Great Britain pound.

(...)
Read the rest of US Dollar Mixed after GDP Data (132 words)

• Voted for £75 bln of QE in last meeting
• Sees risk of more persistent inflation than forecasted
• Never given sovereign ratings that much concern
• Credibility with investors is more important
• Uk growth will be stronger in 2013

• Sees easing of household income squeeze,
• Headwinds from deleveraging and fiscal consolidation
• Sees inflation falling back to target in the near term, but uncertainty about inflation further ahead
• “Disorderly ” euro future poses risk to UK
• Sees “gradual strengthening” of economy

Happy Dayz…..

• UK inflation likely to fall back further
• Outlook highly uncertain
• Sees wages, oil prices as upside risks to inflation
• Need to keep policy under review

Dow Jones reporting.

Italian and Spanish banks expected to be big takers of LTRO.  Not long now till we get the results.

I’ve been of the opinion a lower than expected take up would be good for the euro, but I don’t think the market agrees with me

–Jan Mortgage Approvals for Home Purchase 58,728 vs 55,019 in Dec

London (MNI) – The number of mortgage approvals rose to the highest
level for more than two years in January, a sign that activity in the
housing market is picking up, figures released from the Bank of England
showed Wednesday.

Mortgage approvals rose to 58,728 in January from 55,109 in
December, above the median forecast of 54,000 and the highest since Dec
2009.

Net mortgage lending also posted a monthly rise of Stg1.6 billion
the highest since August 2010, and double the median forecast of Stg0.8
billion.

Recent housing market surveys have found evidence of a pick-up in
housing market activity ahead of the expiry of the Stamp Duty holiday
for first time buyers in March and these figures may well have been
boosted by this effect also.

Net consumer credit bounced back slightly in January, rising Stg0.1
billion on the month, following a fall in December, but was still below
the six month average of Stg0.3 billion.

The broad money data showed M4 ex-IOFCs, a measure designed to
exclude economically irrelevant intra-financial sector transactions,
rose by 1.9% on the month in January and was up 2.9% on the year. this
followed a record monthly fall of 0.7% in December.

Other data showed overseas net purchases of gilts rose Stg9.408
billion in January, having fallen Stg10.663 billion in December. There
has been some concerns that the December fall showed overseas appetite
for gilts waning but these data continue to show a healthy demand.

Overseas Gilt holdings had surged prior to the start of the
second wave of quantitative easing, which began in October and continued
to rise sharply through the first two months of QE2.

–London newsroom: +44 207 862 7491 e-mail: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABDS$]

UK DATA: BOE Jan House Purchase Approvals 58,728 vs 55,019 Dec
–Jan Net Mortgage Lending Stg0.1bn Vs Stg0.987bn Dec
–Jan Net Consumer Credit Up Stg148 mln Vs -Stg46mn Dec
————————————————————————
The number of mortgage approvals rose to their highest level for
more than two years in January, a sign that activity in the housing
market is picking up. Jan Mortgage approvals rose to 58,728 from 55,109
in Dec, above the median forecast of 54,000 and the highest since Dec
2009. Net mortgage lending also posted a monthly rise of Stg1.6 billion
the highest since August 2010, and double the median forecast of Stg0.8
billion. Net consumer credit rose Stg0.1 bn on the month, following a
fall in Dec. Other data showed overseas net purchases of gilts rose
Stg9.408 billion in January, having fallen Stg10.663 billion in
December.

Jan UK mortgage lending + £1.6 bln (expected £0.8 bln) highest since Aug 2010

Jan UK consumer credit +£0.1 bln  (expected +£0.3 bln from -£0.4 bln)

Cable gets a small 5/10 pip bump up to 1.5935 on the better approvals and lending data

–SA Unemployment: 0.0%(pan-German)

FRANKFURT (MNI) – The ranks of the unemployed in Germany in
February held firm at 2.866 million following January’s 26,000-person
fall, while the number of job vacancies fell back, the Federal Labour
Office reported on Wednesday.

As a result, the jobless rate was unchanged at 6.8%. A majority of
analysts polled had projected the unemployment rate at a slightly more
modest 6.7%, with overall levels down by 5,000.

In unadjusted terms, 3.11 million people were unemployed in
February, up from January’s 3.084 million and enough to lift the jobless
rate 0.1 percentage point to 7.4%.

Job vacancies fell by 11,000 in February, reversing January’s rise
of 6,000. Payroll jobs, which are reported with a one-month lag,
increased by 86,000 in January, adding to December’s 57,000-job gain.

A recent Bundesbank report said that the country’s labour market
remains on course for further growth, noting that employment continued
to expand in the fourth quarter of last year despite the economic
downturn. A number of recent indicators also point further employment
growth, though at a slower pace.

Yet consumers’ outlook for unemployment over the coming 12 months
rebounded in February to a four-month high, though remaining well below
the long-run average, a European Commission survey showed.

Still, recent labour market trends have bolstered the propensity to
spend and fueled hopes for higher incomes, according to the research
group GfK.

“The undoubtedly positive situation on the German labour market has
caused consumers to have high expectations of management and trade
unions,” the GfK said Tuesday. “Employees hope that in upcoming pay
negotiations, wage and salary rises will be higher than in the past with
noticeable increases even after inflation has been taken into account.”

The ongoing expansion of employment could lead to labour shortages
in certain sectors, the Organisation for Economic Cooperation and
Development has warned, proposing a number of structural reforms to
counter the risk.

“This includes notably increasing female full-time labour
participation by lowering fiscal disincentives for second earners and
further improving childcare supply,” the OECD said. “Importantly, labour
migration needs to be better focused on economic needs, which requires
lowering the hurdles for high-skilled migrants, for example by
introducing a point system.”

– Frankfurt bureau: +49 69 720 142, email: frankfurt@marketnews.com –

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]

GERMANY DATA: February sa unemployment stable m/m vs MNI fcast -5.0k
– Germany February sa unemployment rate 6.8% vs January 6.8%
– Germany February sa unemployment 2.866 mln vs January 2.866 mln
– Germany February nsa unemployment rate 7.4% vs January 7.3%
– Germany February nsa unemployment 3.11 mln vs January 3.084 mln
– Germany February sa job vacancies -11k vs January +6k
– Germany January sa payroll jobs +86k vs December +57k
– See MNI MainWire for details

Slightly worse than median forecast of -5k.

Unemployment rate 6.8%, unchanged from upwardly revised 6.8 in January (prev 6.7%) Worse than median forecast of 6.7%.

LONDON ((MNI) – The Bank Of England said Wednesday it was offering
an unlimited supply of U.S. dollars in a 7-day operation.

The settlement date on the 7-day op was Mar 1 maturing Mar 7 2012.
The Bank said the repo would be at a fixed-rate, with the rate to be set
at 0.61%.

Additionally, the BOE is offering an unlimited amount of 84-day
dollars at a rate of 0.62%, maturing on May 24.

–London Bureau; Tel: +442076341655; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,M$$BE$]

In line with median forecast.

January’s data revised upward to -0.15 from previous -17.

At 10:00 GMT we have important Swiss CPI data release for January, expected -0.3% m/m, -0.7% y/y.

Look out for those accelerating deflationary pressures……

Chatter in market that there are very decent-sized sell orders just ahead of 1.3500.  Mumblings of 3 yards (3 billion)

Take it for what you will. I’m just passing it on.

FRANCE DATA: Jan sa consumer spending on goods -0.4% m/m, -2.2% y/y
– Below most analysts’ forecasts; MNI survey median fcst: -0.2% m/m
– Jan consumer spending -0.5% vs 4Q average; 4Q +0.2% q/q
– Dec goods spending revised to -0.2% m/m from -0.7% m/m
– See MNI MainWire for details

Weaker than Reuter’s median forecast of +0.2%.

On the plus side, December’s data revised upward to -0.2% from previous -0.7%.

January: +1.3% m/m, +3.7% y/y

MNI survey median: +0.6% m/m, +3.2% y/y
MNI survey range: +0.1% to +0.9% m/m

December: +0.3% m/m, +3.9% y/y
November: +0.4% m/m, +6.0% y/y
–

FRANKFURT (MNI) – German import price inflation accelerated in
January to a one-year high, boosted by all major components, the Federal
Statistical Office reported on Wednesday.

After slowing modestly in December, import prices jumped 1.3% in
January, beating all expectations and resulting in an annual rise of
3.7%.

Excluding crude oil (+4.3% m/m, +17.7% y/y) and petroleum products
(+6.8% m/m, +18.6% y/y), core import prices increased 0.7% on the month
and 1.6% on the year.

Amid mounting tensions over the EU’s embargo of Iranian oil, crude
prices surpassed $125 a barrel this week, underlining upside risks for
imported inflation.

The International Energy Agency argues that market participants may
be overestimating the impact of reduced oil from the Islamic Republic in
a period when slowing economic activity could dampen energy demand.

“The market in 2012 likely has sufficient supply-side flexibility –
between existing OPEC spare capacity and expected 2012 capacity
additions among OPEC and non-OPEC producers – to adjust to any loss in
Iranian volumes,” the agency said in its latest Oil Market Report.

“There is also, as ever, the back-stop provided by strategic stocks
in the event that market mechanisms fail,” it reminded. “Despite these
assurances, perceptions of impending supply issues are clearly placing a
floor under oil prices for now.”

Signs are already pointing to increased pipeline price pressures.
The February PMI surveys linked costlier energy to a significant jump in
input price inflation.

Often the first to reflect changing trends in commodity prices,
intermediate goods imports were 0.5% more expensive than in December,
but still 0.7% cheaper compared to January of last year

Imports of capital goods were also 0.5% more expensive on the
month, resulting in an annual rise of 0.9%. Consumer goods import prices
were up 0.8% on the month, as durable goods prices rose 0.5% and
non-durables were up 0.9%. On the year, consumer durable import prices
increased 3.2%.

Export prices were 0.8% higher on the month, leaving the annual
rate steady at 2.1%, the statistics office added.

– Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com –

[TOPICS: MTABLE,M$G$$$,MAGDS$,M$XDS$,M$X$$$]

– Jan +93k, Dec +55k, Nov +77k, Oct +20k, Sep +30k, Aug +14k, Jul +38k

FRANKFURT (MNI) – German employment extended its run of consecutive
increases to 23 months in January, reaching a new all-time high, though
unemployment rebounded at the same time, the Federal Statistical Office
reported on Wednesday.

Taking into account upward revisions over the past five previous
months, January’s 93,000 increase bumped the employment level to a new
record high of 41.368 million.

Over the same period, the ranks of the unemployment rose by 23,000
persons, lifting the jobless rate 0.1 percentage point to 5.8%.

Boosted by hiring plans in industry and construction, the Ifo
institute’s employment barometer recovered modestly last month after
slipping to its lowest level in over a year, indicating that “the
positive trend” in the German labour market continued into 2012.

The February PMI polls also signaled further growth in private
sector jobs, marking two full years of continuous expansion.

In its latest monthly bulletin, the Bundesank said the labour
market remains on course for growth, noting that employment continued to
expand in the last quarter of 2011 despite the downturn in economic
activity.

At 8:55 GMT today, the Labour Ministry is scheduled to release
jobless figures for February.

– Frankfurt bureau: +49 69 720 142: email: frankfurt@marketnews.com –

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$]

GERMANY DATA: January import prices +1.3% m/m, +3.7% y/y; December +3.9%
y/y
– Germany January import prices above MNI median m/m fcast (+0.6%)
– Germany January export prices +0.8% m/m, +2.1% y/y; dec +2.1% y/y
– Germany January ex-oil/oil products +0.7% m/m, +1.6% y/y
– Germany January import prices: energy goods +3.6% m/m, +17.4% y/y
– Germany January import prices: oil +4.3% m/m;natural gas +0.7% m/m
– Germany January import prices: petroleum products +6.8% m/m
– See MNI MainWire for details

GERMANY DATA: Employment in Germany rose by 93,000 persons to 41.368
million in January, as measured in ILO terms, the Federal Statistical
Office reported on Wednesday. Over the same period, unemployment was up
by 20,000 persons to reach 2.45 million, lifting the jobless rate to
5.8% from December’s 5.7% level.
– See MNI MainWire for details

DAX and CAC 40 futures both up +0.3%.