December’s producer prices were confirmed as -0.2% m/m and +4.3% y/y, and EUR/USD’s doing nothing on the better data.. around 1.3255.

We’re at 1.3250 from session low 1.3240.

Well they’re certainly swimming against the tide today

I’ll be interested to see where we go from here.

There has been talk of a barrier at this level and Reuters recorded a high of 88.00 in the Far East this morning.

Whether the barrier is intact or not i don’t actually know, but it does seem to be a stumbling block at the moment.

Japanese trust banks and Aussie exporters have been the main driving force behind the strong rally this week and the move has been strengthened by Westpac’s announcement  of a Y114 bln issuance of  samurai bonds

There are buy  stops in place on a break of 88.10 ahead of tech resistance at 88.50/55 ( May 3 highs) before some clear blue water to  89.30

AUD/JPY’s sitting at 87.88

–Adds ONS Construction New Orders Data To 0941 GMT Version

LONDON (MNI) – The UK construction sector saw activity rise sharply
in February, with the Markit/CIPS construction headline February
activity index spiking to 54.3 from 51.4.

The data, released by Reuters, show construction activity
accelerating with the sector seeing its 14th consecutive monthly
expansion. Employment in the construction sector, however, declined
despite growth in new business and output.

The 54.3 outturn was the highest since March 2011 and new business
growth was the fastest in 21 months. While employment fell, which Markit
reported was due to reorganisations in some companies, the decline was
only marginal.

The construction data are the second installment of the CIPS/Markit
February UK trilogy.

The first of the trilogy, manufacturing, came in at 51.2, down from
52.0 in January, with pace of expansion easing. The manufacturing survey
also found a marked rise in pipeline inflation, with input costs seeing
the second sharpest month-on-month rise in the survey’s history.

On Friday the Office for National Statistics also published data
for new construction orders, which highlighted the decline in orders in
2011.

The ONS figures showed a 2.5% quarterly fall in new orders in the
fourth quarter, with a very sharp rise, of 41.6%, in infrastructure
orders offset by a 26.6% fall in public housing orders.

The total volume of all new construction orders in 2011 was 14.1%
per cent lower than 2010, National Statistics said.

–London newsroom: +44 207 862 7491; email:drobinson@marketnews.com

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

LONDON (MNI) – The UK construction sector saw activity rise sharply
in February, with the Markit/CIPS construction headline February
activity index spiking to 54.3 from 51.4.

The data, released by Reuters, show construction activity
accelerating with the sector seeing its 14th consecutive monthly
expansion. Employment in the construction sector, however, declined
despite growth in new business and output.

The 54.3 outturn was the highest since March 2011 and new business
growth was the fastest in 21 months. While employment fell, which Markit
reported was due to reorganisations in some companies, the decline was
only marginal.

The construction data are the second installment of the CIPS/Markit
February UK trilogy.

The first of the trilogy, manufacturing, came in at 51.2, down from
52.0 in January, with pace of expansion easing. The manufacturing survey
also found a marked rise in pipeline inflation, with input costs seeing
the second sharpest month-on-month rise in the survey’s history.

–London newsroom: +44 207 862 7491; email:drobinson@marketnews.com

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

“Trying” being the operative word.

We’re at 1.3252 from session low 1.3240.  Hedge fund noted buyer in recent trade.  It’s them against the World   Well it seems a little like that at the moment.

More stops remain through 1.3220.

Much stronger than expected but having little impact on Cable which is sitting around 1.5915

EUR/USD at 1.3253 from session low 1.3245.

Eastern European buying noted in recent trade.  Repeat of yesterday then. As I’ve noticed before, Eastern European names notable sellers at higher levels earlier in the week. Clever trevors

Next lot of sell stops now through 1.3220.

Good morning all  TGIF.

Been told that sell stops lie on a break of 1.2300. We’ve just touched a day’s low of 1.2304 and the cross is currently sitting at 1.2307

AUD/USD is holding firm on custodial and exporter bids around 1.0760/65 and currently sits around 1.0770

Sits at 81.53 from 81.45 which greeted me first thing.

We’ve been as high as 81.71.

Barrier options noted now at 81.75 and 82.00.

Presently 320 bps from the 308 I jotted down first thing

Spanish/German 10 year bond yield spread out to 311 bps from early 300

• Fiscal compact to restore trust among EUstates

Barroso: 

• Fiscal treaty to restore stability in EU finances
• Treaty signals  ’irreversibility of euro’
• Europe ‘in better condition than before’
• But region is ‘not out of the woods’
• Spain promised to present budget in March
• Need Spanish budget before taking decisions

Stops been tripped down through 70 and 60 in EUR/USD.  Apparently more through 50.

Apparently buy stops through. 9900

We sit at .9875.

What’ll come first, 83.00 or 80.00.

Reasoning for choice always welcome, but not obligatory.

Finnish PM Katainen told reporters in Brussels

“We don’t have a plan B” adding “We have chosen the way how to deal with the crisis.  Now Greece has a very good opportunity to do what it has to do.”

What, no 3rd bailout in the offing?

Dalia Grybauskaite told reporters in Brussels

 ”If we need in the future a third package, there will be a third package” adding “The Greek efforts are already impressive, Europe is behind them and we’re trying to help.”

Session low 1.3276 just posted in wake of crappy German retail sales.

Buy orders seen clustered 1.3260/70, some sell stops just below there.

UPDATE:  Just been told stops through 70 as well, just to complicate matters. Life’s never plain sailing, is it?

Real, seasonally adjusted retail sales:

January: -1.6% m/m, +1.6% y/y

MNI survey median: +0.7% m/m, +0.3% y/y
MNI survey range: -0.5% to +0.8% m/m

December: +0.1% m/m, +0.3% y/y (revised from -1.4%/-0.9%)

FRANKFURT (MNI) – German retail sale levels fell faster in January
than even the most pessimistic forecasts had expected, touching an
eight-month low, while December’s decline was revised up to a modest
increase, the Federal Statistical Office reported on Friday.

Taking into account December’s upward revision, January’s 1.6% drop
brought overall turnover to +1.6% on the year, the best result since
August. Compared to the 4Q average, sales were down 1.7% at the start of
the year.

Disaggregating the annual figure, food, drink and tobacco sales
increased 1.2%, while non-food sales were 2.0% higher.

Retailers polled in last month’s PMI reported a robust increase in
monthly sales in February, lifting the headline indicator to 55.3. The
report also noted that respondents were optimistic about the outlook for
sales in March.

With jobless fears well below average and upcoming wage
negotiations underpinning households’ income expectations, Germans
remain in a spending mood, especially for big-ticket items. A recent
European Commission survey showed that the proportion of consumers who
made major purchases recently grew in February to a one-year high.

However, ongoing tensions between Iran and the West, which have
pushed Brent crude to record highs in euro terms recently, pose a
significant risk and could lead to a retrenchment in German
discretionary spending.

Inflation figures from six of the largest German states indicated
significant upward pressure stemming from energy last month, resulting
in the first annual rise in the national rate since September.

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

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

GERMANY DATA: January real sa retail sales -1.6% m/m, +1.6% y/y
– Germany January m/m retail sls below all fcsts (MNI median +0.7%)
– Germany December m/m retail sales revised up to +0.1% (-1.4%)
– Germany January retail sales -1.7% vs 4q avg, 4q -0.1% q/q
– Germany January sales 3mma (November-January:October-December) -0.6%,
December -0.1%
– See MNI MainWire for details

Compared to Reuter’s median forecast of +0.5% m/m, +0.2% y/y.

That -1.6 month on month fall don’t look too healthy

EUR/USD has dipped about 10 pips on the data in a very slow start to European trade.