European FX Midday recap

14:04CET

These are the items that have hit the wires and have had some impact on the FX markets thus far:

    * Reuters poll of 26 economists:  Slim majority expect China to raise interest rates before end of year. Poll taken over past 3 days.
    * Moody’s maintains negative outlook for Spanish banks
    * Luxembourg ForMin Asselborn: We have a euro crisis and must deal with it jointly
    * German govt spokesman: Chancellor is convinced must act now to ensure stable euro
    * Banks putting economic recovery at risk – Bank of England warns

EUR/USD up at 1.3265 from early 1.3195.  Talk had Asian sovereign buy orders down at 1.3170/80 and decent sell orders at 1.3220/30 and these parameters proved durable for a large part of the morning session.  Finally with US treasury yields coming lower EUR/USD took off. Stops were tripped through 1.3240 on way to session high 1.3278.

USD/JPY is little changed on day, presently at 84.00.  Hedge fund buying was noticeable early and we got as high as 84.36.  An Asian sovereign came in selling above 83.30 and as US treasury yields came off so the pairing slipped back

Posted via email from MT4