‘The search for the next Bank of England governor needs to extend beyond Britain’

I was reading this yesterday.

Poppycock!!! is all I’m sayin……

-UK CIPS Aug Manufacturing PMI 49.5 Vs 45.2 In Jul: Markit/Reuters

LONDON (MNI) – The UK manufacturing sector saw activity rebound in
August after hitting its lowest level for more than three years in July.

The headline Markit/Chartered Institute of Purchasing and Supply
index from Reuters spiked to 49.5 in August from a downwardly revised
45.2 in July. The August reading was a four month high, and well above
analysts’ median forecast for a 46.1 outturn, but still just below the
50 breakeven level.

Looking through the monthly volatility, the underlying picture
remains one of manufacturing failing to expand, and it may struggle to
make a positive contribution to Q3 GDP.

Markit said the rates at which production, new orders and new
exports were contracting all eased sharply in August. Manufacturing
employment increased slightly.

“Having followed such marked declines in July, the August readings
for production and new orders do little to change the underlying picture
of a fragile sector facing enormous headwinds,” Rob Dobson, Senior
Economist at Markit, said.

The manufacturing sector spearheaded the UK’s initial recovery from
its credit crunched induced recession, but the official data have shown
it contracting again and Dobson highlighted the hurdles it has to
overcome.

“Overall demand remains too lacklustre to provide an imminent and
sustained recovery, with investment spending still weak,” he said.

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

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

Speaking to University students in Budapest.

Yo pumpkin, just remember ‘pride cometh before a fall’

UK DATA: UK PMI manufacturing 49.5 in Aug vs revised July 45.2 (was
45.4).

Demonstrably stronger than Reuter’s median forecast of 46.0.

July revised fractionally lower to 45.2 from previous 45.3.

Makes ya proud to be British!!!

Cable has spiked higher in wake of data, presently at 1.5895.

How exciting!!!

Expected 46.1 from previous 45.3.

Cable sits at 1.5865.

Talk of buy orders clustered 1.5820/40, sell stops below there.    Sell orders clustered 1.5880/00, buy stops gathering in 1.5900/20 area.

Our friends at FXstreet.com again reporting.

Touch lower than flash 46.2.

German August final manufacturing PMI 44.7,  down from flash 45.1.

Euro zone August final manufacturing PMI 45.1, touch lower than flash 45.3.

Our friends at FXstreet.com reporting

Guess they’re going with 1.0170 in our latest poll then

Down from 44.3 in July and weaker than Reuter’s median forecast of 44.8.

Lowest read in 10 months.

Then I can sit around and do bugger all everyday…..

Maybe I shouldn’t be quite sooooo harsh though.  Indeed we’re up 10 pips from when I first got in, presently at 78.35!!!

Buy orders clustered 78.00/20. Reports have sell stops gathered through both 77.95 and 77.90 (take your pick, what’s 5 pips between friends)

Sell orders clustered 78.40/60, buy stops above there.

Weaker than Reuter’s median forecast of 49.0.

Chant after me “KEEP THE PEG!! KEEP THE PEG!! KEEP THE PEG!!”

Up from 42.3 in July and better than Reuter’s median forecast of 42.6.

Highest read since March (hooooray!!)

I like a bit of good news

EUR/USD sits at 1.2581, up 3 pips since I got in.

It’s all go!!!

NO SURRENDER!!!!

I like that

• Rise in swiss franc would be ‘substantial threat’ to swiss economy
• Rise in swiss franc would carry risk of deflation
• Economic uncertainty in euro area of great concern

Dow Jones reporting.

Seems those expecting the SNB to drop the EUR/CHF peg in the near future are barking up the wrong tree.  Woof!!

FRANKFURT (MNI) – The Swiss National Bank will continue to enforce
the minimum exchange rate with the utmost determination, SNB Chairman
Thomas Jordan said Monday in a speech text prepared for delivery at the
NZZ Capital Markets Forum in Zurich.

“In the current situation, a further appreciation of the Swiss
franc would constitute a very substantial threat to the Swiss economy,
and would carry with it the risk of deflationary developments. With this
in mind, we will continue to enforce the minimum exchange rate with the
utmost determination, in line with our mandate,” Jordan said.

Jordan said that the “economic uncertainty in the euro area, in
particular, is of great concern to Switzerland and the SNB.” While the
Swiss central bank cannot influence developments in the euro area, it
can “act in a resolute and timely manner to dampen the negative
implications for our country,” Jordan stressed.

The head of the SNB underlined the importance of a stable financial
system and banking sector particularly for Switzerland and welcomed the
recent reform push aimed at ensuring greater stability.

In this context, Jordan pointed to the new instrument of
countercyclical capital buffers and said that the SNB’s decision not to
propose activating them thus far should not be interpreted as easing
concern over emerging imbalances especially for the real estate market.

“This is far from an all-clear for the real estate market. I want
to underline again that the risk of a further build-up of imbalances
followed by a significant price correction is still present. The
countercyclical capital buffer is a key element in the package of
measures recently approved by the Federal Council,” Jordan said.

–Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@mni-news.com

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

• ECB knows what problem of euro is, will act (sometimes I find myself just smiling)
• Draghi comments on spreads were important
• Details of how intervention would work unclear
• Full 100 bln of Spain’s bank bailout won’t be used
• VAT increase will boost revenues
• Gasoline prices take time to reflect oil decline
• Government concerned about fuel prices (me too)
• Capital flight due to banks not rolling over funding
• Government is committed to deficit target
• Deficit target is NO1 priority for Spanish government
• Catalonia has taken tough deficit measures
• FROB to announce Bankia capital injection within hours

Bloomberg reporting.

2 year notes up 3 bps at 3.69%.

I reckon Spain could do with somebody buying some of their bonds

Sits at 1.2578, totally unchanged from when I dragged myself downstairs to my office at some ungodly early hour (I don’t really have a seperate office, I work in the lounge.)

I’ve come to the conclusion Pete gets far too much vacation time.

US Labor Day holiday today which could well crimp price action this morning barring a sizeable tape bomb.

Buy orders seen clustered 1.2540/60, light sell stops below there. More buy orders noted clustered 1.2500/10, more stops below there.

Topside sell orders gathered around 1.2600.  Not sure where buy stops above there.

More sell orders clustered 1.2640/50 ahead of 1.2650 barrier option interest.

Sounds like the market’s gearing itself up for a very volatile September.

Must be time for some lengthy vacation time then

Increased interest in AUD/USD of late given the travails of the Chinese economy.

We sit at 1.0270 presently.

What d’ya think we’ll see first 1.0170 or 1.0370?

Reason/s for choice appreciated, but not obligatory.

DAX futures down -0.3%, CAC 40 futures down -0.5%