The EUR/GBP cross is trading at session low .7808 amid talk of sizeable interest to sell the cross lined up for the 11:00 BST (10:00 GMT) London fix.

Make of it what you will.  Given we started the day up around .7835-ish, guess at least some of the interest has already been front run.

Dow Jones

• ECB govt bond buys not best way to tackle crisis
• ECB govt bond buys “problematic”, create false incentives
• EFSF buying govt bonds is “unproblematic”

Italian 10 year govt bond yield up 11 bps on day to 6.14%.

EUR/USD down at 1.2245.

Handelsblatt

I earlier reported talk of buy orders clustered down at 1.2240/60.  We’ve slipped down to 1.2261.

Will be interesting to see how lumpy the buy interest actually is.

As I’ve gone for 1.2200 in the latest EUR/USD poll, I personally hope the orders are real light

Sell stops seen through 1.2240

Italian 10 year govt bond has erased earlier gains and yield now up 5 bps on day at 6.08%.

ITALY DATA: July sa business morale up 6.0 pts to 5-month high of 81.89
- Composite index gain on improved morale in services sector
- Mfg, construction and retail morale weaker
- Mfg orders and outlook for demand weaker, sales prices down
- Mfg inventories up slightly

Hesse CPI

July: +0.4% m/m, +1.7% y/y
June: flat m/m, +1.8% y/y
—
Pan-German CPI

MNI median forecast: +0.4% m/m, +1.7% y/y
MNI forecast range: +0.2% to +0.6% m/m

June: -0.1% m/m, +1.7% y/y
—

BERLIN (MNI) – Consumer prices in the western German state of Hesse
rose 0.4% in July, dampening the annual inflation rate to +1.7% from
+1.8%, the state statistics office said Friday.

The monthly result is in line with the median forecast for
pan-German CPI in an MNI survey of analysts. Saxony, North
Rhine-Westphalia, Baden-Wuerttemberg and Brandenburg also posted monthly
price increases of 0.4%.

During the holiday period, airline tickets were up 8.7% on the
month and package holiday tours rose 14.9%. Hotel and restaurant
services climbed 2.5%.

Energy price developments were mixed, with heating oil up 5.7%,
motor fuel up 2.8% and gas up 0.1%, while electricity was unchanged.

Food prices fell 1.2%, with seasonal produce down 5.6%.

Due to unusually cold summer weather, clothing retailers had to
give marked discounts, cutting prices for clothing and shoes by 4.8%.

Annual price developments were again marked by energy prices. Gas
was up 4.7%, heating oil rose 4.5%, electricity climbed 3.0% and motor
fuel was up 2.6%. Food prices rose 3.6%, with seasonal produce up 7.3%.

CPI excluding heating oil and motor fuel rose 0.3% on the month and
1.7% on the year. CPI-ex energy and seasonal products and services was
down 0.3% on the month and up 1.2% on the year.

Pointing to easing commodity prices due to moderating global
economic growth, the Finance Ministry said last week that “there is no
inflation risk at the moment for Germany from current price developments
on global markets.”

Import prices fell for the third consecutive month in June on the
back of ever cheaper energy products. The 1.5% monthly fall knocked
import prices down to their lowest level for the year and the annual
rate to +1.3%, its slowest pace since December 2009.

Modest global economic growth and demand are likely to limit oil
price gains in the coming months, according to the International Energy
Agency. Yet prices could still remain high in absolute terms due to
ongoing supply-side risks and potential emerging market demand, the IEA
warned.

The uncertainty surrounding economic developments in general and
inflation in particular in Germany and elsewhere are posing significant
challenges for monetary policy, the Bundesbank said in its latest
monthly report released Monday.

“The crisis in the Eurozone is dampening the German economy more
heavily than previously expected,” the DIW economic research institute
warned earlier this month, adding, though, that a recession was not
expected.

German business confidence eroded more than generally expected in
July to its lowest level since early 2010, as firms adjusted downward
their assessment of both the current situation and the near-term
outlook, the Ifo institute reported on Wednesday.

European Central Bank president Mario Draghi said earlier this
month that the Eurozone “inflation path is moving favourably” towards
the ECB’s medium-term inflation goal of close to but below 2%.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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

Brandenburg CPI

July: +0.4% m/m, +1.7% y/y
June: -0.1% m/m, +1.8% y/y
—
Pan-German CPI

MNI median forecast: +0.4% m/m, +1.7% y/y
MNI forecast range: +0.2% to +0.6% m/m

June: -0.1% m/m, +1.7% y/y
—

BERLIN (MNI) – Consumer prices in the eastern German state of
Brandenburg rose 0.4% in July, dampening the annual inflation rate to
+1.7% from +1.8%, the state statistics office said Friday.

The monthly result is in line with the median forecast for
pan-German CPI in an MNI survey of analysts. Saxony, North
Rhine-Westphalia and Baden-Wuerttemberg also posted monthly price
increases of 0.4%.

During the holiday period, package holiday tours rose 14.9% on the
month. Hotel and restaurant services climbed 2.8%.

Energy price developments were mixed, with eating oil up 4.7% and
motor fuel up 0.6%, while gas and electricity were unchanged.

Food prices fell 0.9%, with seasonal produce down 4.5%.

Due to unusually cold summer weather, clothing retailers had to
give marked discounts, cutting prices for clothing and shoes by 2.1%.

Annual price developments were again marked by energy prices.
Heating oil rose 8.5%, gas was up 7.0%, motor fuel climbed 2.9% and
electricity rose 1.5%. Food prices rose 2.5%, with seasonal produce up
3.7%.

CPI excluding seasonal food was up 0.5% on the month and 1.7%
higher on the year. CPI-ex heating oil and motor fuel rose 0.4% on the
month and 1.6% on the year.

Pointing to easing commodity prices due to moderating global
economic growth, the Finance Ministry said last week that “there is no
inflation risk at the moment for Germany from current price developments
on global markets.”

Import prices fell for the third consecutive month in June on the
back of ever cheaper energy products. The 1.5% monthly fall knocked
import prices down to their lowest level for the year and the annual
rate to +1.3%, its slowest pace since December 2009.

Modest global economic growth and demand are likely to limit oil
price gains in the coming months, according to the International Energy
Agency. Yet prices could still remain high in absolute terms due to
ongoing supply-side risks and potential emerging market demand, the IEA
warned.

The uncertainty surrounding economic developments in general and
inflation in particular in Germany and elsewhere are posing significant
challenges for monetary policy, the Bundesbank said in its latest
monthly report released Monday.

“The crisis in the Eurozone is dampening the German economy more
heavily than previously expected,” the DIW economic research institute
warned earlier this month, adding, though, that a recession was not
expected.

German business confidence eroded more than generally expected in
July to its lowest level since early 2010, as firms adjusted downward
their assessment of both the current situation and the near-term
outlook, the Ifo institute reported on Wednesday.

European Central Bank president Mario Draghi said earlier this
month that the Eurozone “inflation path is moving favourably” towards
the ECB’s medium-term inflation goal of close to but below 2%.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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

GERMANY DATA: Hesse July CPI +0.4% m/m, +1.7% y/y; June +1.8% y/y
– Hesse July CPI m/m matches MNI median fcast
– See MNI MainWire for details

GERMANY DATA: Brandenburg July CPI +0.4% m/m,+1.7% y/y; June +1.8%
y/y
– Brandenburg July CPI m/m matches MNI median fcast
– See MNI MainWire for details

From revised 88.7 in June,  demonstrably weaker than Reuters’ median forecast of 88.4.

Where did AUD/USD top out?

Why 1.0440 ofcourse.  Where did I say the sell orders were clustered? Why 1.0440/50 ofcourse.

We’re back at 1.0425.

Who needs Pete Jackson and his bloody orderboard?

I guess quite a few of you will be pleased to see him back on Monday   Me too. I need him to pay attention to what’s going on. All this concentration is giving me a headache.

Baden-Wuerttemberg CPI

July: +0.4% m/m, +1.4% y/y
June: -0.1% m/m, +1.6% y/y
—
Pan-German CPI

MNI median forecast: +0.4% m/m, +1.7% y/y
MNI forecast range: +0.2% to +0.6% m/m

June: -0.1% m/m, +1.7% y/y
—

BERLIN (MNI) – Consumer prices in the western German state of
Baden-Wuerttemberg rose 0.4% in July, dampening the annual inflation
rate to +1.4% from +1.6%, the state statistics office said Friday.

The monthly result is in line with the median forecast for
pan-German CPI in a MNI survey of analysts. Saxony and North
Rhine-Westphalia earlier also posted monthly price increases of 0.4%.

During the holiday period, prices for hotel and restaurant services
climbed 2.9% on the month. On the energy side, heating oil prices rose
4.3%, motor fuel climbed 1.6% and household energy was up 0.9%.

By contrast, food prices fell 1.0%, with seasonal produce down
5.3%. Due to the unusually cold summer weather, clothing stores had to
give marked discounts. Prices for clothing and shoes dropped 3.7%.

Annual price developments were again marked by energy prices.
Heating oil rose 5.1%, household energy climbed 4.9% and motor fuel was
up 2.9%. Food prices rose 3.7%, with seasonal produce up 4.8%.

Pointing to easing commodity prices due to moderating global
economic growth, the Finance Ministry said last week that “there is no
inflation risk at the moment for Germany from current price developments
on global markets.”

Import prices fell for the third consecutive month in June on the
back of ever cheaper energy products. The 1.5% monthly fall knocked
import prices down to their lowest level for the year and the annual
rate to +1.3%, its slowest pace since December 2009.

Modest global economic growth and demand are likely to limit oil
price gains in the coming months, according to the International Energy
Agency. Yet prices could still remain high in absolute terms due to
ongoing supply-side risks and potential emerging market demand, the IEA
warned.

The uncertainty surrounding economic developments in general and
inflation in particular in Germany and elsewhere are posing significant
challenges for monetary policy, the Bundesbank said in its latest
monthly report released Monday.

“The crisis in the Eurozone is dampening the German economy more
heavily than previously expected,” the DIW economic research institute
warned earlier this month, adding, though, that a recession was not
expected.

German business confidence eroded more than generally expected in
July to its lowest level since early 2010, as firms adjusted downward
their assessment of both the current situation and the near-term
outlook, the Ifo institute reported on Wednesday.

European Central Bank president Mario Draghi said earlier this
month that the Eurozone “inflation path is moving favourably” towards
the ECB’s medium-term inflation goal of close to but below 2%.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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

GERMANY DATA:Baden-Wuerttemberg July CPI +0.4% m/m,+1.4% y/y; June +1.6%
y/y
– Baden-Wuerttemberg July CPI m/m matches MNI median fcast
– See MNI MainWire for details

It has been awhile.

EUR/USD sits at 1.2290.

What’ll we see first, 1.2200 or 1.2400

Reasoning/s for choice would be good, but not obligatory.

Up from 24.44% in Q1, but better than Reuters’ median forecast of 24.85%.

Highest rate since 1976.

1976……..I remember it well.  Was working for SG Warburg and absolutely hated it.  Worst job I ever had

FRANCE DATA: July consumer morale 87; June 89 (90)
– Buying-propensity down six points
– Future inflation worries up nine points
– Jobless fears up eight points
– See MNI MainWire for details

From downwardly revised 89 in June,  weaker than medium forecast of 90.

AUD/USD up at 1.0435 from the 1.0415 that greeted me first thing.

Talk of sell orders clustered 1.0440/50, buy stops above there.

Sounds like there could be barrier option interest at 1.0450, but I have no confirmation of such.

I do have confirmation though of barrier option interest up at 1.0500.

Buy orders said to be clustered down at 1.0350/80.

I was reading John Taylor’s weekly tome yesterday. One of his colleagues was saying that they see a daily close above 1.0420 as a bullish signal. Just thought I’d let ya know

To 5.99%. First time below 6% since July 20.

Hallelujah, hallelujah, hallelujah…….

EUR/USD sitting on its’ hands, unchanged since I got in at 1.2288.

Saxony CPI

July: +0.4% m/m, +1.8% y/y
June: -0.1% m/m, +1.7% y/y
—
Pan-German CPI

MNI median forecast: +0.4% m/m, +1.7% y/y
MNI forecast range: +0.2% to +0.6% m/m

June: -0.1% m/m, +1.7% y/y
—

BERLIN (MNI) – Consumer prices in the German state of Saxony rose
0.4% in July, lifting the annual inflation rate 0.1 point to +1.8%, the
state statistics office said Friday.

The monthly result is in line with the median forecast for
pan-German CPI in a MNI survey of analysts.

Heating oil prices rose 4.5% on the month, motor fuel climbed 0.8%
and gas was 0.7% more expensive, while electricity was unchanged.

Food prices fell 1.1%, with seasonal produce down 5.6%. Clothing
and shoes were down 3.2%.

Due to the holiday period, airline tickets were up 8.7% and package
holiday tours rose 14.9%. Hotel and restaurant services climbed 2.4%.

Annual price developments were again marked by energy prices. Gas
was up 6.6%, heating oil rose 6.2%, electricity climbed 0.8% and motor
fuel was up 2.5%. Food prices rose 2.9%, with seasonal produce up 5.1%.

CPI excluding seasonal food was up 0.5% on the month and 1.7% on
the year. CPI-ex heating oil and motor fuel rose 0.3% on the month and
1.6% on the year.

Pointing to easing commodity prices due to moderating global
economic growth, the Finance Ministry said last week that “there is no
inflation risk at the moment for Germany from current price developments
on global markets.”

Import prices fell for the third consecutive month in June on the
back of ever cheaper energy products. The 1.5% monthly fall knocked
import prices down to their lowest level for the year and the annual
rate to +1.3%, its slowest pace since December 2009.

Modest global economic growth and demand are likely to limit oil
price gains in the coming months, according to the International Energy
Agency. Yet prices could still remain high in absolute terms due to
ongoing supply-side risks and potential emerging market demand, the IEA
warned.

The uncertainty surrounding economic developments in general and
inflation in particular in Germany and elsewhere are posing significant
challenges for monetary policy, the Bundesbank said in its latest
monthly report released Monday.

“The crisis in the Eurozone is dampening the German economy more
heavily than previously expected,” the DIW economic research institute
warned earlier this month, adding, though, that a recession was not
expected.

German business confidence eroded more than generally expected in
July to its lowest level since early 2010, as firms adjusted downward
their assessment of both the current situation and the near-term
outlook, the Ifo institute reported on Wednesday.

European Central Bank president Mario Draghi said earlier this
month that the Eurozone “inflation path is moving favourably” towards
the ECB’s medium-term inflation goal of close to but below 2%.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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