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Risk currency are slightly weaker ahead of the European open...

Monday, September 24, 2012 3:54 AM GMT

      Good Morning,

 

§  EURUSD lost all the gains of Friday in the Asian session today and tested nearly the lows of last Thursday. The low so far in Asia was 1.2928 and USDCHF reached 0.9360. Risk currency are slightly weaker ahead of the European open.

 

§  Stocks: Nikkei -0.57 %, Hang Seng -0.04 %, Shanghai Composite +0.09 %, Dow Jones -0.13 %, S+P500 -0.01 %

 

§  Euro-zone governments are planning to increase the firepower of the bloc's permanent rescue fund, the European Stability Mechanism, to more than two trillion euros using leverage, in order to provide a potential safety net for Italy and Spain, German magazine Der Spiegel reported Sunday.

 

§  The Greek budget gap is about EU20b, Der Spiegel magazine says, citing preliminary findings from so-called troika of inspectors from European Commission, ECB and IMF

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§  Greece should be allowed more time to meet deficit targets set by international lenders provided it is sincere about reforming its economy, French Prime Minister Jean-Marc Ayrault said on Sunday.

 

§  ECB Coeure said policy makers may not reduce interest rates further as confidence in the euro-area's economic outlook improves and inflation stays high. "The jury is open as to whether there should be another rate cut," Coeure told reporters. "It's not absolutely obvious that another rate cut would be necessary."

 

§  ECB Executive Board member Joerg Asmussen says a new bond-purchase plan is better as countries have to meet strict conditions before it starts, NRC Handelsblad reported, citing an interview. * Says ball is Spain's corner * Spain has to restructure banks; Spanish regions' financing needs to be organized differently

 

§  Spain Economy Minister De Guindos said on Saturday that Spain will not rush to seek EU aid. Expects the results of an independent stress test will not be far from the maximum amount (EUR60bn) showed in the first estimates. Sees Spain Economy contracting by 0.4% in Q3.

 

§  Bank of Japan Deputy Governor Hirohide Yamaguchi spoke in Tokyo: * Economy, price outlooks have deviated down * Bank will not monetize debt, which could trigger yield increases * Won't influence forex directly via policy * Will set policy by watching forex impact on economy * Delay in China recovery is unavoidable

 

§  Some Bank of Japan policy makers said six weeks before the bank expanded asset purchases that it shouldn't dismiss any options in combating risks from the European debt crisis, a record of last month's meeting showed. The bank should "stand ready to take appropriate actions without ruling out any options in advance," according to minutes of the Aug. 8-9 central bank meeting released in Tokyo today. One member said the economy had "not yet overcome deflation".

 

§  PM Noda says that China's reaction to dispute between two countries over islands claimed by both could weaken China's economy by scaring away foreign investors, WSJ reports.

 

§  Inflation rate in September may be lower than July's 1.8 percent, Song Guoqing, an advisor to the People's Bank of China said at an economic conference in Beijing today. * Says inflation is generally trending down * Sees it rebounding slightly in fourth quarter due to lower base effect last year * Says inflationary pressure will decline in first quarter next year

 

§  China's economy hasn't shown any signs of rebounding in the third quarter, and domestic investment is unlikely to expand dramatically in the short term given the cautious pace of bank lending and fiscal spending, central bank adviser Song Guoqing told a forum in Beijing on Saturday.

 

§  IMM Positions: EUR -74k (smallest short since Nov 2001) vs -94k, JPY 16k vs 33k, GBP 14k vs -4k, CHF -4k vs -9k, CAD 112k vs 102k, AUD 69k vs 68k, NZD 16k vs 10k

 

14:30

US Chicago Fed Nat Activity Index Aug

16:30

US Dallas Fed Manf Activity Sep

21:30

Fed Williams

10:00

Germany IFO Sep

10:30

BOE Statement from Fin. Policy Committee Meeting

(CET)

Have a nice week !

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