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D-Day - Draghi day.......

Thursday, September 6, 2012 3:39 AM GMT

Good Morning,

 

§D-Day - Draghi day and one year anniversary of the 1.2000 EURCHF floor today. All eyes will be on Mr. Draghi this afternoon when he presents his bond plan, it looks like that there is no ECB cut expected anymore after leaks said ECB will refrain from lowering rates today. EURCHF continued to rise (1.2058) on hopes that the ECB plan will help to ease tension on the cross, there were also some rumors in the market that SNB may act again on the 1 year anniversary of the floor introduction which falls on the same day like the ECB meeting today. Personally I doubt that they should act, why should they expose themselves even more to the market, the ECB plan is meant to lower the rates burden but will not be an immediate fix for all the problems in Europe. AUDUSD dipped to a fresh 6 weeks low (1.0165) but recovered later on the mixed numbers. Otherwise very little news flow overnight.

 

§Stocks: Nikkei -0.20 %, Hang Seng -0.10 %, Shanghai Composite +0.26 %, Dow Jones +0.09 %, S+P500 -0.11 %

 

§German Finance Minister Wolfgang Schaeuble warned the European Central Bank on Wednesday not to forget that its top job is to keep inflation under control, not bail out stressed governments. Speaking to German television on the eve of a crucial meeting of the ECB's governing Council, Mr. Schaeuble said: "I am sure that the ECB is aware that its primary mandate is to preserve price stability," rather than to finance public deficits through the "printing press." At the same time, Mr. Schaeuble expressed dismay at the degree to which the issues under consideration by the ECB have been leaked to the press, giving rise to the perception of a personal dispute between ECB President Mario Draghi and German central bank head Jens Weidmann. Mr. Weidmann is understood to be opposed to Mr. Draghi's plan to revive purchases of government bonds by the ECB. "This whole speculation of 'who, with whom, and against whom' does not serve the independence of the central bank," Mr. Schaeuble said.

 

§Australia Data Recap    Period     Survey    Actual    Prior    Revised

* Employment Change      Aug         5.0k       -8.8k     14.0k      11.7k

* Unemployment Rate       Aug        5.3 %     5.1 %      5.2 %

 

§Bank of Japan won't buy bonds to finance debt, Governor Masaaki Shirakawa says in Tokyo today. * Japan's economy is recovering "moderately" * BOJ must be aware of overseas risks * BOJ will continue to conduct appropriate policy

 

14:15

US ADP Employment Change Aug

14:30

US Initial Claims

16:00

US ISM Non-Manufacturing Aug

11:00

Eurozone Household Consumption Q2 P

11:00

Eurozone GDP Q2 P

12:00

Germany Factory Orders July

11:30

Bundesbank Dombret + Nagel

13:45

ECB announces interest rates

14:30

ECB press conference

19:30

ECB Mersch + Coene

09:00

UK Halifax house Price Aug

13:00

BOE Asset Purchase Target

13:00

BOE announces rates

09:30

Sweden Service Production July

09:30

Sweden Riksbank announces rates

 

(CET)


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