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Merkel says German economy is in good shape

German chancellor speaking to BDI lobby group in Berlin 6 Oct
  • Brexit is a headwind
  • German industry to be applauded for being open in turbulent times
Merkel buttering up German industry chiefs.
  • sees room for modest tax relief
  • big challenges lay ahead
  • balanced budget is a necessity not a fetish

Something about having the words "fetish " and "Merkel" in the same post is making me a little queasy.
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Theresa May takes aim at businesses and elites

Listen to this rhetoric from the UK Prime Minister
Theresa May today said "change has got to come" to Britain and that she's going to make it.
The location of the comments made a statement too. It wasn't a an organized labor meeting or to students, she spoke at the Conservative Party conference; suggesting it's a real priority.
"If you're a boss who earns a fortune but doesn't look after your staff; an international company that treats tax laws as an optional extra; a household name that refuses…
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EURopean equities open firmer 4 Oct

Positive tones as European markets get underway 4 Oct
  • FTSE +0.65% near session highs as GBP falls. Exporters finding favour.
  • DAX +0.55%
  • CAC40 +0.45%
  • FTMIB +0.5%
  • IBEX + 0.5%

FTSE now at highest level (7032.56) since May 2015
we don't quite get the exporter/lower GBP correlation so strongly as others .
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Fitch:

US is slowing, UK is growing, China is reaping what its sowing
A note on the global outlook from Fitch
  • US 2016 growth forecast lowered to 1.4?% vs 1.8% prior
  • UK data is slightly better than expected
  • BOE is unlikely to follow through on forward guidance to cut rates before year-end
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UK services July PMI final reading

UK official reserves changes for July
UK International Reserves and Foreign Currency Liquidity
data are published on a monthly basis in accordance with the IMF/G10's Special Data Dissemination Standard (SDDS) using the IMF International Reserves Template. Summary data are published by HMT in a monthly press release, and on the third working day of every month.I'm reading through now.

  • +$196m due to valuation

GBP declines post-Brexit making an impact on reserves valuation.
Meanwhile GBPUSD up to …
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Forex technical analysis:USDCAD and oil following each other

Tech/Option support also in play
Mike Paterson outlined a large option expiry at 1.3000 in the USDCAD and in the minutes running up to the option expiry the price moved to 1.3004 and stopped. Option sellers earn all the premium when the options expire at the strike price. They pretty much expired at the strike price. The option sellers are happy.
The option buyers....not so happy.
Of course oil prices were rising into that expiry as well. The price of oil peaked near that time at the $40.91 leve…
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Pound under pressure again as EURGBP posts new session highs

It's a familiar tale again as
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Where have all the USDJPY to 130 bulls gone?

USDJPYis looking decidedly dodgy as it hovers around 110.00Where are all the dollar bulls hiding? If I was at a football match I'd be singing, "and it's all gone quiet over there" to them.
Ok, I'll concede that most of the calls are for year end or 12m forecasts and we know that plenty can happen in that time. What we do have now are players now thinking that 110 may be breached.
Deutsche Bank have been one banging that drum recently. There's a couple more coming out the woodwork too.
FPG…
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America FX news wrap. Quiet start to the trading

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Japan needs economic measures in H2 of current fiscal year

Weekend: LDP VP says Japan needs economic measures in H2 of current fiscal year
Masahiko Komura, vice president of the ruling Liberal Democratic Party of Japan, speaking on an NHK Sunday morning political debate show:
  • Japan needs to implement this year's budget quickly
  • Will need a supplement later in the FY
These in response to measures needed to boost consumer spending
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Unsurprising that Japan still considering more economic support.
Author: Eamonn Sheridan
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