Shanghai share index up 1.2%, 4-week closing high UK September jobless claims +20,800, better than median forecast of +24,500; claimant count rate 5.0%, better than expected 5.1%; August ILO unemployment rate 7.9%, better than expected 8.0%. Cable sees good rally off data Euro zone August industrial production +0.9% m/m, -15.4% y/y vs median forecasts of +1.2%, -15.5% respectively German chambers of industry and commerce (DIHK) say euro strength worries them ECB’s Quaden: Economic recovery looks modest and fragile German institutes see German GDP at -5.0% in 2009, +1.2% in 201. Due to present tomorrow- Sources JP Morgan Chase Q-3 earnings $0.82, much better than median forecast of $0.52.
It’s been an interesting, active, morning. EUR/USD is at 1.4895, little changed from an early 1.4885, but inbetween we’ve been as high as 1.4920. Asian sovereign seen buying early and barrier option interest at 1.4900 was soon tested. However a combination of a Japanese bank, Eastern European interests and another Asian sovereign selling kept the barrier intact for awhile. But there was an inevitability, you just knew the barrier was going to be overcome and so it proved.. There ensued alot of back and forth trading around the 1.4900 line with a session high 1.4920 posted before the pairing settled back. Cable started around 1.5960 and rallied early but ran into heavy selling interest just south of the psychological 1.6000. From there we saw a decent sell off and when the jobs report came out (see above) we stood at 1.5945. The better than expected numbers triggered a fierce rally, stops triggered above 1.6000 and we posted a 1.6025 session high. Just as quickly profit taking set in and cable was slumping lower. So far touted buy orders at 1.5965 down through 1.5950 have help the line. USD/JPY finishes appreciably higher, presently at 89.65 from an early 88.95. A fair portion of the rally seemed to come post JP Morgan results (see above), which were much better than expected ,and gave general risk appetite a lift.