By: Gerry Davies
ECB and IMF working opn Spanish 300 bln bailout - Report German FinMin Schaeuble: Doesn't expect ESM to be able to recapitalise banks directly by January 2013 More Schaeuble: If one state can't pay into ESM, size of ESM would shrink PBOC official: QE3 has global inflation risks. QE3 may push up commodity prices Dutch FinMin: Spain must show markets commitment to reform and implement austerity. If there is any financial support for Spain, it will come with conditions. Spain on right track Austrian FinMin: Greece can get more time, not more money Spanish banks borrowed 411.7 bln from the ECB in August Eurogroup converging around 'more time' for Greece - ekathermerini Slow-ish morning burst into life, the main feature japanese yen weakness. USD/JPY up at 78.10 from early 77.62, having been as high as 78.22 after buy stops tripped through 78.00. EUR/JPY up at 102.18 from early 101.15, having been as high as 1.02.23, the move accelerating when the 200 dma at 101.76 gave out and buy stops tripped. USD/JPY has been underpinned by sharply firmer US treasury yields, the benchmark 10 year treasury yield up at 1.8187% from early 1.7421%. There has been talk of BOJ checking USD/JPY rates, but that has little to really do with this move. The yen is also being underminned by growing speculation the bank of Japan will signal more monetary ease at it's meeting next week (rate decision next Wednesday, Sept 19th) Another factor, increasing oil and commodity prices post will harm the Japanese deficit. EUR/USD up at 1.3085 from early 1.3028. Early rally fizzled out circa 1.3055 and we dipped back. Then as EUR/JPY took flight so did EUR/USD.
ECB and IMF working opn Spanish 300 bln bailout - Report German FinMin Schaeuble: Doesn't expect ESM to be able to recapitalise banks directly by January 2013 More Schaeuble: If one state can't pay into ESM, size of ESM would shrink PBOC official: QE3 has global inflation risks. QE3 may push up commodity prices Dutch FinMin: Spain must show markets commitment to reform and implement austerity. If there is any financial support for Spain, it will come with conditions. Spain on right track Austrian FinMin: Greece can get more time, not more money Spanish banks borrowed 411.7 bln from the ECB in August Eurogroup converging around 'more time' for Greece - ekathermerini Slow-ish morning burst into life, the main feature japanese yen weakness. USD/JPY up at 78.10 from early 77.62, having been as high as 78.22 after buy stops tripped through 78.00. EUR/JPY up at 102.18 from early 101.15, having been as high as 1.02.23, the move accelerating when the 200 dma at 101.76 gave out and buy stops tripped. USD/JPY has been underpinned by sharply firmer US treasury yields, the benchmark 10 year treasury yield up at 1.8187% from early 1.7421%. There has been talk of BOJ checking USD/JPY rates, but that has little to really do with this move. The yen is also being underminned by growing speculation the bank of Japan will signal more monetary ease at it's meeting next week (rate decision next Wednesday, Sept 19th) Another factor, increasing oil and commodity prices post will harm the Japanese deficit. EUR/USD up at 1.3085 from early 1.3028. Early rally fizzled out circa 1.3055 and we dipped back. Then as EUR/JPY took flight so did EUR/USD.
