With 1.2675 strike.

US investment bank seen aggressive buyer. (just being confirmed it’s THAT US investment bank) Said to have done a yard so far.  Anyone asking what a yard is will be taken out and shot

EUR/USD sits at 1.2525 having been as high as 1.2534.

In recent trade but its hardly soaring like an eagle is it!..

USD/JPY’s hit the dizzy heights of  78.62 from early lows of  78.49… exciting stuff eh

On an unrelated note there have been reports of some soveriegn sales in the EUR/AUD earlier which accounted for the fall to 1.2031, but we’ve since bounced back with the EUR/USD to day’s highs in the cross of 1.2072.

NB. There are buy stops placed on a break of 1.2100 in the EUR/AUD cross

We’re up at 1.2510.

Hard to get too excited by the move.

At the end of the day we’re only back to where we closed out last week in North America.  Going nowhere fast.

Reports major French bank notable buyer in this latest uptick. Talk the buying interest could well be Middle East related.

July sa M3: +3.8% y/y
M3 sa 3-mo avg: +3.4% y/y
SA private loans: +0.1% y/y

MNI survey medians:
July sa M3: +3.2% y/y
SA private loans: -0.2% y/y

MNI survey ranges:
July sa M3: +2.8% to +3.3% y/y
SA private loans: -0.4% to +0.1% y/y

June sa M3: +3.2% y/y
M3 sa 3-mo avg: +3.0% y/y
SA private loans: -0.2% y/y

–

FRANKFURT (MNI) – Private sector lending in the Eurozone picked up
slightly in July after two months of decline, while M3 broad money
supply growth also surprised to the upside, the European Central Bank
reported on Tuesday.

Private sector lending in July was up 0.1% on the year, partly
offsetting the 0.2% decline in June, but failed to stop a further
decline in overall private sector credit by 0.6% after a 0.4% decline in
June. Adjusted for sales and securitisation, loans rose by 0.5% on the
year after a 0.3% rise in June.

Consumer loans increased by 0.3% on the year, unchanged from June’s
rate, with lending for home mortgages, the most important component,
also steady at +0.8% on the year.

Loans to non-financial corporations dropped by 0.4% on the year
after posting -0.6% in June. In monthly terms, loans bounced back by E8
billion after a E3 billion contraction in June.

The slight pick-up in lending comes after the ECB lowered its
deposit rate to 0% at the July Governing Council meeting, a move some
had hoped might push banks into using the money received in the ECB’s
two three-year long-term financing operations.

While some ECB officials said a sharp drop in overnight deposit
facility use was an encouraging sign, banks to date have instead mostly
left funds in the ECB’s current accounts covering minimum reserves,
rather than move funds from the deposit facility into the real economy.

ECB Executive Board member Joerg Asmussen repeated Monday that
long-term central bank financing is designed to “ensure that banks are
in a position to carry out their actual function — providing credit to
firms and households — and thereby transmit the impulses of the central
bank.”

The broad money supply (M3) rose by 3.8% on the year in July,
compared to a median survey forecast of +3.2%, bringing the three-month
moving average up to +3.4%, still below the ECB’s price-stability
guideline of +4.5%.

Narrow money (M1) was up by 4.5%, while the growth rate in
short-term deposits other than overnight slowed to +2.2%. Over the same
period, marketable instruments increased to a rate of +6.4%.

–Frankfurt newsroom +49 69 720 142; e-mail: ccermak@mni-news.com

[TOPICS: M$$EC$,M$X$$$,M$XDS$,MT$$$$]

Sounds like a contender for a ‘Darwin ‘ award to me……

Interestingly he was killed in ‘Flathead county’

Soc Gen’s  Macro strategist Wei Yao sees a “multi-year and bumpy” landing for the Chinese economy……… FT Alphaville

Stronger than Reuter’s median poll of 3.2%.

M3 moving average May-July 3.4%, up versus 3.0% April-June.

We’ve got a EUR/USD poll on the go, parameters 1.2450-1.2650.

But Elvin wants a poll to help alleviate the boredom, so a poll he shall have.

We sit at 1.2505.

So what’ll we see first, 1.2450 or 1.2550?

Reason/s for choice always welcome, but not obligatory.

• Talk of an exit hurts, and undermines the euro area
• Need to overturn unfair stereotypes of Greece abroad
• Bailout extension doesn’t mean more funds are required
• EU leaders need to send a clear message on euro unity
• Supports PM Samaras

Sounds like he’s singing from the same hymn book as some of those German coalition bods i mentioned earlier

Stark being…………………………………………well Stark

Back up into the 1.0360′s again after earlier AUD/JPY induced fall. The market looks like it may have been caught a bit short after the fall to 1.0347 where option buyers amongst others quickly snapped up the dip (see orderboard).

There’s a reasonably sized option expiry at 1.0400 today which also may well attract later. Offers await a further move up around 1.0400 and there weresome unconfirmed mutterings of a barrier above at 1.0450 overnight. Bids remain in place from 1.0355 down to 1.0340 with some sell stops below ahead of stronger support and bids ahead of the 200 day MA at 1.0304 and the 1.0300 barrier.

AUD’s sitting around  1.0368 after a recent day’s high of 1.0376

At 3% by March 2013.

Presently at 3.5%.

FRANCE DATA: May-July sa housing starts -5.8% q/q; nsa -9.4% y/y
- 2Q sa housing permits +0.9% q/q, nsa -2.9% y/y

Megan Greene speaks to The Economist

FRANKFURT (MNI) – The European Central Bank will be overextended
and no longer able to fulfill its price stability mandate if it engages
in more sovereign bond buys, former ECB Executive Board member Juergen
Stark wrote in an editorial for German daily Handelsblatt Tuesday.

Stark, who resigned from the ECB in 2011, in large part because of
the original SMP bond-buying program, said restarting such a program
would lead to inflation dangers down the road and further erode the
ECB’s political independence.

Stark accused the ECB Governing Council members from southern
peripheral Eurozone countries of trying to use the ECB to achieve
national interests. He said bond buys were “hardly” relevant for
monetary policy and instead amounted to “de facto” state financing.

“The role, which the ECB appears prepared to take on, will
over-extend the central bank and further erode its independence from
politics. And in the end, the central bank will no longer be able to
perform its core task, guaranteeing price stability,” Stark wrote.

“There is a threat of higher inflation – not today, not tomorrow.
but medium to long term,” he wrote.

– Frankfurt bureau: +49 69 720 142; email: ccermak@mni-news.com –

[TOPICS: M$X$$$,M$$EC$,MGX$$$,M$$CR$]

GERMANY DATA: GfK Sep consumer morale seen at 5.9, Aug unrevised 5.9
–GfK consumer morale above expected; MNI median forecast 5.8
–GfK says consumers feel Eurozone crisis impact to a growing degree
–See MNI Mainwire for details

• Don’t expect govt to take specific action in helping Fonterra
• Working hard on expanding oil, gas industry to diversify exports
• Concerned about strong NZ dollar, but not much govt can do

Dow Jones reporting.

Here’s why…… (Business Insider)

From revised 1.59 in June (previous 1.6)

Betta make sure ya keep that peg in place

Unchanged from August and in line with Reuter’s median forecast.