European Morning Wrap: Mild Risk on Morphs into Mild Risk Off
Spain to present independent bank stress test result 6.00 pm local time (16:00 GMT, 17:00 BST)
EU to issue full assessment of Spain's budget in November
EU spokesman O'Conner: Spanish budget has to be fully analyzed
France's 2013 budget forecasts public deficit to fall to 3% of GDP in 2013
Merkel: As the world changes, Europe has to change. Must not fight the crisis by piling up more debt
Kansas Fed's George: Dodd-Frank reforms won't stop US bank bailouts
French Q2 GDP (final) flat q/q
German Aug prelim retail sales +0.3% m/m, weaker than Reuters' median forecast of +0.6%
Italian Aug PPI +0.7% m/m, +2.7% y/y, above expectations of +0.3%, +2.5% respectively
European stocks opened nicely firmer, but as the morning has progressed those gains have evaporated and we're now markedly underwater. The worst performing market is Spain's IBEX, down 1% (who would have thunk it)
EUR/USD sits at 1.2920, effectively unchanged on day. Early reports had sell orders lined up from 1.2960 upto 1.3000 (hope you read our orderboard) We rallied early, managing to push through decent Swiss sell orders (the 'swiss mafia') circa 1.2945 and got to session high..........................1.2960.
Reports then came in that there were 'decent' sell orders on EBS at 1.2960/61. If you read Forexlive you'll have known this when it was still 1.2950 bid!!! Then as European stocks gave ground and periphery govt bond yields rose, so EUR/USD came lower giving up all earlier gains.
USD/JPY touch firmer at 77.62 from early 77.45. Talk of buy orders clustered 77.40/45 (rumoured semi-official bids), sell stops below there.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.