European Morning Wrap Up; risky kinda morning
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German September import prices -0.9% m/m, -11.0% y/y, weaker than median forecasts of -0.7%, -10.7% respectively Shanghai share index up 0.4% Italy October business confidence rise to 77.1, up from 74.3 in September, better than median forecast of 75.1 and highest level since September 2008 Japan Govt official: Govt wants BOJ to support economy via monetary policy Euro zone Sept leading economic index up 1.2% at 100.6 vs 1.8% gain in Aug - Conference Board You can still sniff the risk aversion in the air, but it's been a relatively mild odor in the forex markets this morning. European stocks have come under some pressure, FTSE 100 off around 1.75%, DAX 30 off around 1.50%. Oil meanwhile is off half a buck or so. EUR/USD started around 1,4805 and rallied early, reaching well-touted sell orders up at 1.4840/50 where it ran into a brick wall. Eastern European names were seen good sellers around the highs. From there we headed southwards as European stocks came under accelerated pressure. An Asian sovereign was seen buying just ahead of 1.4800, but that merely slowed the sell-off, didn't stop it. We eventually reached a session low 1.4774, just north of very well-touted buy orders at 1.4770/80. Talk BIS stepped and bought around 1.4780, which is where we sit at writing. Stops seen on move through 1.4770. Cable rallied early, moving from 1.6350 to a session high 1.6385 before turning tale as Europea stocks got hit. We''re presently down at 1.6325, with buy orders at 1.6305/15 so far just about absorbing the selling pressure. USD/JPY little chaged, presently at 91.00 from an early 91.15. Heightened risk is keeping the spot pairing underp ressure and the yen stronger on the crosses. AUD/USD down at .9050 from an early .9090 as risk appetite wanes. An Asian sovereign stepped in and lifted the pairing early, back over .9100 to .9115/25 area. However it didn't last long and even decent buying from a Swiss private bank ahead of .9100 could arrest subsequent sell-off. We're presently back down at .9055.
