The euro continued to trade in a range around to 1.3350 level

Good Morning,

- The euro continued to trade in a range around to 1.3350 level, even as France's Finance Minister Michel Sapin urged the ECB to do more to combat deflationary risks and make the currency more competitive.

- Global stocks rise, led by Wall Street rebound.

- Germany’s economy contracted more than economists forecast last quarter and France stagnated, adding to pressure on the euro area as the Ukraine crisis and slowing inflation threaten to derail the region’s recovery. Gross domestic product in the Germany, fell 0.2 percent from the first quarter, when it rose a revised 0.7 percent. Economists forecast a contraction of 0.1 percent, according to the median of 37 estimates in a Bloomberg survey.

- French GDP held steady in Q2 2014.

- Yields on Germany's two-year debt actually went negative, meaning investors were paying for the privilege of lending money to Germany.

- theguardian uk : The Bank of England is making emergency plans in case a yes vote in Scotland's independence referendum threatens the stability of sterling, bank governor Mark Carney has disclosed. Carney refused to set out what the Bank's contingency planning involved, but admitted that the disputes between the Scottish and UK governments over the future of the pound "could raise financial stability issues" which were already being addressed. Banking experts and companies such as UBS has warned that a yes vote on 18 September could lead to currency flight, with billions of pounds being withdrawn from Scottish banks and investment houses by customers anxious to protect their money.

- Citi on GBP/USD: Wednesday’s price action on GBP suggests additional weakness remains likely which would be further confirmed with decisive breaks through key support/resistance levels. In GBP/USD, Citi notes that it posted a bearish outside day within the downtrend· "Short-term supports are at 1.6693, the May low, and immediately below there at the 200 day moving average (currently 1.6661)," Citi adds. "A break below those levels, if seen, would suggest GBPUSD can move even further with long-term initial supports converging around 1.6450 (55 week moving average and the March low) and beyond there around 1.63 (2012 highs), Citi projects.

- BOE’s Miles does not see UK economy stagnating, says it’s a different scenario to the problems that Japan faced/face. It’s likely that going into next year that wages will pick up and start to outstrip inflation, can’t give cast iron commitment on rates. Inflation outlook is key for interest rates. Path back to normal rates will be gradual.

- Italy's Renzi must bring back the lira to end depression. Italy has been in depression for almost six years. The slump has been punctuated by false dawns, overwhelmed each time by the monetary amateurs in charge of EMU policy. The latest recovery fizzled after a single quarter. The economy is in technical recession again. Output has collapsed by 9.1pc from the peak, back to levels last seen 14 years ago. Industrial production is down to 1980 levels.

- Inflationary expectations in Australia fell considerably in August. The expected inflation rate, reported in the Melbourne Institute Survey, fell by 0.7 percentage points to 3.1 per cent in August from 3.8 per cent in July.

- The Bank of Korea is widely expected to cut its rates by 25 basis points to 2.25 percent today.

- Brazilian markets were shaken by the death of presidential candidate Eduardo Campos in a plane crash.

Have a nice Day!