2012.08.31 05:55:21 EUR/JPY intraday: under pressure.

EUR/JPY intraday: under pressure.

Update on supports and resistances.
Pivot: 98.5

Our preference: Short positions below 98.5 with targets @ 98.05 &
97.85 in extension.

Alternative scenario: Above 98.5 look for further upside with 98.8 &
99 as targets.

Comment: a break below 98.05 would trigger a drop towards 97.85.

Key levels
99
98.8
98.5
98.222 last
98.05
97.85
97.7

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume

30.08.2012 02:15 Up

2012.08.31 05:11:04 MOODY'S - - - KEPCO'S WEAK PERFORMANCE CREDIT NEGATIVE, NO RATING IMPACT

MOODY'S - - - KEPCO'S WEAK PERFORMANCE CREDIT NEGATIVE, NO RATING IMPACT

2012.08.31 02:03:55 Japan's Industrial output declines un expectedly in July

News

Japan's Ind. Output declined unexpectedly by 1.2 pct in July, defying
forecast for 1.7 pct rise as global slowdown and stronger yen continue
to bite
Forward looking measure of the survey, now expects 0.1 pct rise in
August while decrease of 3.3 pct in Sep
Earlier today Japanese PMI for Mfg, sector gave almost similar picture
of Mfg. sector with slight decline to 47.7
Japanese domestic demand on back of reconstruction work has remained
only cushion for the export economy struggling with rising yen in wake
of global slow down

2012.08.30 20:25:40 ASMUSSEN - - C BANK ACTION CANNOT AND SHALL NOT IRON OUT MISTAKES OF FISCAL AND FINANCIAL MARKET POLICIES

2012.08.30 19:06:05 US TREASURY - PRIMARY DEALERS TAKE $12.69 BLN OF 7-YEAR NOTES SALE, INDIRECT $11.12 BLN

2012.08.30 12:33:09 Polish economy unlikely slow further in Q3 - FinMin

News

Poland's economy should not slow further in the Q3 - Rostowski
Poland's economy expanded by 2.4 pct in the Q2 below expected 2.9 pct
Quotes

"When it comes to a data for the second quarter, they are
disappointing...However we don't see signals of a further slowdown in
the third quarter."

Jacek Rostowski, Finance Minister

2012.08.29 23:36:05 Chicago Currency Settlement Prices

YEAR OPEN
OPEN HIGH LOW SETTLE CHG HIGH LOW INT

Japan Yen
SEP 12 1.2734 1.2743 1.2693 1.2710 -.0027 1.3087 1.1915 147,023
DEC 12 1.2736 1.2750 1.2705 1.2721 -.0027 1.3100 1.1980 2,361
Est vol 54,865 open int 149,444

Canadian Dollar
SEP 12 1.0112 1.0132 1.0096 1.0112 -.0004 1.0168 .9554 152,092
DEC 12 1.0100 1.0109 1.0075 1.0090 -.0005 1.0136 .9545 9,622
MAR 13 1.0070 1.0071 1.0070 1.0066 -.0004 1.0110 .9536 1,609
JUN 13 1.0056 1.0056 1.0035 1.0040 -.0004 1.0070 .9530 394
Est vol 64,182 open int 163,842

British Pound
SEP 12 1.5823 1.5854 1.5802 1.5835 +.0015 1.6276 1.5266 114,525
DEC 12 1.5812 1.5850 1.5801 1.5832 +.0015 1.6150 1.5335 2,367
Est vol 69,332 open int 117,034

Swiss Franc
SEP 12 1.0465 1.0467 1.0427 1.0434 -.0031 1.1180 1.0040 54,810
DEC 12 1.0481 1.0487 1.0450 1.0454 -.0032 1.0933 1.0131 614
Est vol 49,202 open int 55,426

(END) Dow Jones Newswires

August 29, 2012 17:36 ET (21:36 GMT)

2012.08.29 22:31:07 G7 Political, Economic Calendar - Week Ahead

All dates are in GMT.


Wednesday, August 29, 2012 Exp Prev
GMT
2350 JPN Aug Provisional Trade Statistics for 1st 10 days of Month
2350 JPN Jul Preliminary Retail Sales
Overall Retail Sales (on year) +0.2%
Large-Scale Retailers' Sales
(on year) -2.6%

Thursday, August 30, 2012 Exp Prev
GMT
0030 JPN Jul Detailed Import & Export Statistics
0800 GER Aug Labour market statistics (incl unemployment)
Jobless Claims (Adjusted) +8000 +7000
Jobless Claims (Unadjusted) 2.88M
Jobless Rate (Adjusted) 6.8 6.8
Jobless Rate (Unadjusted) 6.8
0810 EU Aug Eurozone Retail PMI
0830 UK Jul Bank of England lending to individuals figures
Consumer Credit 0.6B
Consumer Lending 0.3B
Mortgage Approvals 44192
Mortgage Lending -0.4B
0830 UK Jul BSA savings & mortgage lending figures
0830 UK Jul Bank of England effective interest rates
0830 UK Jul Bank of England's UK residents deposits & lending analysis
0830 UK Jul Monetary & Financial Statistics
0830 UK Jul Sectoral breakdown of aggregate M4 and M4 lending
0900 EU Aug Business & Consumer Surveys - Business Climate Indicator &
Economic Sentiment Indicator
Business Climate Index -1.3 -1.27
Consumer Confidence -24.6 -21.5
Economic Sentiment 87.6 87.9
Industrial Confidence -15 -15
Services Confidence -8.5
0900 ITA Aug Business Confidence Survey
Business Confidence Index 87.3 87.1
1000 UK CBI Economic Forecast press briefing
1230 US Aug 25 Unemployment Insurance Weekly Claims Report - Initial
Claims
Weekly Jobless Claims 370K 372K
Weekly Jobless Claims Net
Change -2K +4K
Cont Jobless Claims (prior
week) 3317000
Cont Jobless Claims Net Chg
(prior week) +4K

1230 US Jul Personal Income & Outlays
Personal Income +0.3% +0.5%
Personal Spending +0.4% 0%
PCE Price Index Monthly +0.1%
PCE Price Index Yearly +1.5%
PCE Core Price Index Monthly +0.1% +0.2%
PCE Core Price Index Yearly +1.8%
1230 CAN Q2 Balance of Payments
Current Account Balance -10.27B
1230 US U.S. Weekly Export Sales
Corn, In Metric Tons 253.4K
Soybeans, In Metric Tons 1.02M
Wheat, In Metric Tons 396.7K
1230 CAN Jun Payroll employment, earnings & hours
1330 US International Monetary Fund - IMF External Relations
regular press briefing
1345 US Aug 26 Bloomberg Consumer Comfort Index
Consumer Comfort -47.4
1400 US Aug 18 DJ-BTMU U.S. Business Barometer
DJ-BTMU Business Barometer -0.1%
DJ-BTMU Business Barometer (52
Wk) +1.8%
1430 US Aug 24 EIA Weekly Natural Gas Storage Report
Total Working Gas in Storage 3370B 3308B
Total Working Gas in Storage
(Net Change) +62B +47B
1500 US Aug Federal Reserve Bank of Kansas City Survey of Tenth
District Manufacturing
Manufacturing Activity Index 2
Manufacturing Activity Index
(6 Mon) 22
Manufacturing Composite Index 5
6-Month Composite Expectations
Index 13
1600 US Aug ICSC Chain Store Sales Trends
1800 CAN Aug Bank of Canada Banking and Financial Statistics
2030 US Aug 20 Money Stock Measures
2030 US Aug 29 Federal Discount Window Borrowings
Primary Credit Borrowings 9M
Primary Credit Borrowings W/E
Daily Avg 10M
Discount Window Borrowings 2.85B
Discount Window Borrowings W/E
Daily Avg 3.41B
2030 US Aug 29 Foreign Central Bank Holdings
Foreign US Debt Holdings 3.57T
US Foreign Agency Holdings 698.39B
Foreign Treasury Holdings 2.87T
2301 UK CBI Economic Forecast
2301 UK Aug UK Consumer Confidence Survey
Consumer Confidence -26 -29
2315 JPN Aug Japan Manufacturing PMI
2330 JPN Jul Labour Force Survey
Jobless Rate 4.3% 4.3%
2330 JPN Jul CPI (Nation), CPI ex-food (Nation)
Japan Core CPI (on year) -0.3% -0.2%
Japan Overall CPI (on year) -0.2%
Japan Overall CPI (on month) -0.5%
2330 JPN Aug CPI (Tokyo), CPI ex-Food (Tokyo)
Tokyo Core CPI (on year) -0.6% -0.6%
Tokyo Overall CPI (on year) -0.8%
Tokyo Overall CPI (on month) -0.2%
2330 JPN Jul Household Spending
Wage-Earner Household Spending
(on year) +2.5%
All Household Spending (on
year) +1% +1.6%
Propensity to Consume YoY %Pts
Chg -0.6%
Adjusted Propensity to Consume 50.3
2350 JPN Jul Preliminary Industrial Production
Industrial Output (on month) +1.8% -0.4%
Inventory-Shipments Ratio (on
month) +4%
Shipments (on month) -1.5%
Inventories (on month) -1.4%
Companies Forecast Ind Output
In Following Month +4.5%
Companies Forecast Ind Output
Two Months Later -0.6%
Industrial Output For 3 Month
Period (on quarter) -2.2%
N/A US Republican National Convention Committee on Arrangements -
Mitt Romney speech closes Republican National Convention
N/A US Federal Reserve Bank of Kansas City - Jackson Hole economic
policy symposium opens

Friday, August 31, 2012 Exp Prev
GMT
0400 JPN Jul Auto exports
Auto Exports (on year) +7.2%
0400 JPN Jul Auto production
Auto Production (on year) +20.3%
0430 JPN Jul Preliminary Report on Petroleum Statistics
0500 JPN Jul Housing Starts
Housing Starts -9.7% -0.2%
0500 JPN Jul Construction Orders
Construction Orders +4.6%
0600 GER Jul Retail Trade
Retail Sales Monthly +0.1% +0.5%
Retail Sales Yearly +2.9%
0600 UK Aug Nationwide House Price Index
House Prices Monthly -0.7%
House Prices Yearly -2.6%
0730 EU Aug EuroCOIN indicator of euro area economic activity
EuroCoin Indicator -0.24%
0900 ITA Aug Cities CPI
0900 EU Aug Flash Estimate euro area inflation
CPI (Flash Est) +2.5% +2.4%
0900 ITA Aug Provisional CPI
CPI Monthly Preliminary +0.3% +0.1%
CPI Yearly Preliminary +3.1% +3.1%
0900 EU Jul Unemployment
Jobless Rate 11.3% 11.2%
1000 ITA Jul PPI
Producer Prices Monthly +0.3% -0.1%
Producer Prices Yearly +2.1% +2.1%
1230 CAN Jun GDP by Industry
GDP +0.1% +0.1%
1230 CAN 2Q GDP
+1.6%
1345 US Aug ISM-Chicago Business Survey - Chicago PMI
(MORE TO FOLLOW) Dow Jones Newswires

August 29, 2012 16:31 ET (20:31 GMT)

2012.08.29 21:04:44 Brazil Can Still Grow Very Close to 2% - Itau's Goldfajn

--Itau Unibanco predicts 1.9% growth for 2012 -Goldfajn

--Brazil's benchmark Selic will likely end 2012 at 7% -Goldfajn

--Brazil's government needs to raise its own investments -Goldfajn


By Luciana Magalhaes


SAO PAULO--The slow rebound of Brazil's economy doesn't reflect
structural problems, but rather the effects of the global financial
crises and a cool-down after a rapid recovery in 2009, said a top
economist at Brazil's Itau Unibanco Holding S/A (ITUB, ITUB4.BR), the
country's largest private-sector bank.

Brazil could grow close to 2% in 2012 and more than double this rate
in 2013, said Ilan Goldfajn, chief economist at Itau Unibanco and
former central bank director, told Dow Jones Newswires.

Still, over the longer term, the country will have to tackle some of
its underlying problems to be able to raise investments and increase
productivity, and thus maintain a steady growth rate, Mr. Goldfajn
said. Brazil's investment rate is around 19% of gross domestic product
and Mr. Goldfajn expects it to reach 22% of GDP in the next four
years.

The economist predicts Brazil's GDP will grow 1.9% in 2012 and 4.5% in
2013; both projections are above market consensus. Financial market
analysts and economists have reduced their forecast for the country's
economic expansion this year, to 1.73%, according to the latest weekly
survey by the central bank. GDP growth for 2013 is seen at 4%.

After a dismal rate of growth in the first quarter of this year, when
Brazil's GDP expanded only 0.2% over the previous quarter, economic
activity would need to show a consistent increase from the second
quarter. Second-quarter GDP will be released on Friday and Itau
foresees a 0.5% expansion from the first three months of the year. Any
negative surprise will likely lead the bank to cut its projections for
the year.

Mr. Goldfajn expects more aggressive action by Brazil's central bank
than most in the market. He sees Brazil cutting the benchmark Selic
interest rate to 7.5% later on Wednesday and then to 7% by the end of
the year. The consensus estimate is 7.25% by December.

"I believe we can keep a lower interest rate in Brazil because the
country's risk has diminished over the time," Mr. Goldfajn said. In
this respect, change hasn't happened from last year: Interest rates in
Brazil have been falling over time, Mr. Goldfajn said.

Brazil was stuck for many years with the belief that high interest
rates were needeed to avoid any rise in inflation. But so far this
year, this has been proven wrong. Brazil's inflation is seen at 5.19%
at the end of the year, within the government's target range.

Brazil's base rate is at a historic low level of 8% and is widely
expected to fall another half-point later Wednesday. The central bank
began cutting rates in August 2011, as growth in Brazil slowed
sharply. Analysts have recently reduced their outlook for Selic at the
end of 2013, to 8.25%.

If growth picks up, the economist said, the Brazilian central bank
will likely consider raising rates next. "But we are talking about
raising it maybe from 7% to something like 8.5%, possibly at the end
of 2013."

Mr. Goldfajn believes one of the Brazilian government challenges today
is to better use its own capital resources, increasing money devoted
to investments. "Today, federal investment is 0.5% of GDP," he said.
"Ideally, it should go to 1.25 or 1.5% of GDP," the economist said.
Another challenge is to "make the money work, is to implement the
investments."

Earlier this month, Brazilian President Dilma Rousseff announced a
broad-based rail and highway concession program involving total
investments over the next 30 years of 133 billion reais ($65.6
billion). A similar program for ports and airports is likely to be
announced later this year.


Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com


(END) Dow Jones Newswires

August 29, 2012 15:04 ET (19:04 GMT)

2012.08.29 16:05:05 Joy Global Net Rises 12%, Cuts Year Outlook

Joy Global Inc.'s (JOY) fiscal third-quarter earnings rose 12% as the
mining equipment maker's revenue and margins improved, but bookings
continued to decline.

Shares fell 5.3% to $50.27 in early trading as the company lowered its
full-year earnings estimate to between $7.05 and $7.20 a share on
revenue of $5.45 billion to $5.55 billion from its May forecast of
$7.15 to $7.45 a share on revenue between $5.5 billion and $5.7
billion. Joy Global also warned that it expects fiscal 2013 revenue to
be flat or down slightly if current market conditions continue.

The stock has fallen 29% this year.

"The outlook for our business has continued to decline over the past
quarter," said President and Chief Executive Mike Sutherlin. "Although
the U.S. market has progressed in line with our expectations, the
deceleration of China demand has deteriorated international markets
more quickly and severely than previously expected."

Weak global economic growth has tempered demand for iron ore, copper
and other commodities, while coal has struggled against stiff
headwinds as natural-gas prices hit decade lows. Joy Global has seen
its bookings decline amid soft demand in the domestic aftermarket
space and a challenging international market, especially in Europe and
China. The company also has warned that it expects near-term order
rates to moderate and revenue could flatten.

Still, Joy Global saw its top- and bottom-line results rebound earlier
this year, boosted in part by acquisitions. Last year, the company
paid $1.1 billion for Rowan Cos." (RDC) LeTourneau manufacturing
operations, giving it exposure to oil- and gas-drilling equipment, and
bought International Mining Machinery Holdings Ltd. to obtain access
to smaller mine operators that typically do business with Chinese
manufacturers.

For the quarter ended July 27, Joy Global reported a profit of $193.5
million, or $1.81 a share, up from $173.1 million, or $1.62, a year
earlier. Earnings from continuing operations rose to $1.82 a share
from $1.61. Sales jumped 22% to $1.39 billion.

Analysts polled by Thomson Reuters most recently forecast earnings of
$1.88 a share on revenue of $1.42 billion.

Operating margin rose to 21.6% from 20.8%.

Sales in the underground mining equipment business climbed 2.4%. Sales
from the smaller surface mining segment were up 22%.

Order bookings, an indication of future sales, fell 25% to $1.08
billion from $1.45 billion a year earlier.

Write to Melodie Warner at melodie.warner@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

August 29, 2012 07:05 ET (11:05 GMT)

2012.08.29 12:35:04 AgBank 1st Half Net Meets Views

Quotes from RBC Capital Markets:

-USD/CAD has drifted higher with a tight 0.9876-0.9899 range. Domestic
data are second-tier today.

2012.08.29 10:00:00 *German Brandenburg Aug CPI +0.2% On Mo, +2.0% On Year

(MORE TO FOLLOW) Dow Jones Newswires

August 29, 2012 04:00 ET (08:00 GMT)

2012.08.29 09:34:45 GBP/USD intraday: the bias remains bullish.

USD/JPY intraday: bullish bias above 78.4.

Update on supports and resistances.
Pivot: 78.4

Our preference: Long positions above 78.4 with targets @ 78.7 & 78.9
in extension.

Alternative scenario: Below 78.4 look for further downside with 78.25
& 78.1 as targets.

Comment: the RSI advocates for further advance.

Key levels
79.05
78.9
78.7
78.569 last
78.4
78.25
78.1

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

2012.08.29 09:23:19 DATA SNAP: German State Saxony August CPI Boosted By Oil Prices

By Margit Feher


Consumer prices in the German state of Saxony rose faster in August
than expected for the whole of the country due to a sharp rise in oil
prices, data released Wednesday by the state's statistics office
showed.

Inflation data released Tuesday by Germany's most populous state,
North Rhine Westphalia, already indicated that German consumer prices
received a boost in August from higher energy prices on the back of a
weaker euro.

Consumer price inflation in Saxony was 0.3% on the month and 2.1% on
the year in August, with the annual reading exceeding the European
Central Bank's price stability threshold of 2%. The readings are also
higher than the expectations of analysts polled by Dow Jones Newswires
for a monthly increase of 0.2% and an annual rise of 1.9% for the
whole of Germany in August.

Fuel prices increased 4.9% in August from July and were up 8.9% from a
year earlier in Saxony in August. Household energy prices were 1.0%
higher on the month and 5.9% up on the year.

Four additional German states are due to report their inflation
readings and the federal statistics office is slated to release its
pan-Germany estimate for this month later Wednesday.


Write to Margit Feher at margit.feher@dowjones.com


(END) Dow Jones Newswires

August 29, 2012 03:23 ET (07:23 GMT)

2012.08.29 09:20:53 MARKET TALK: Raiffeisen Sees HUF Weakening Ahead

0720 GMT [Dow Jones] Raiffeisen sees HUF weakening ahead in response
to Tuesday's surprise base rate cut to 6.75% from 7.00% which
investors received unfavorably and HUF weakened 1% against EUR. Rate
setters will likely continue to focus on helping the economy and push
for more rate cuts which raises credibility concerns given the risk
environment, Raiffeisen says. Market participants will also likely
anticipate further weakening after the year-high HUF levels around 275
from last week didn't prove lasting. Raiffeisen traders see EUR/HUF in
a range of 278.30 to 282.60 Wednesday. EUR/HUF is 281.89 vs 281.05
Tuesday. (gergo.racz@dowjones.com)


Contact us in London. +44-20-7842-9464
Markettalk.eu@dowjones.com

(END) Dow Jones Newswires

August 29, 2012 03:20 ET (07:20 GMT)

2012.08.29 07:03:56 EUR/JPY intraday: the upside prevails.

EUR/JPY intraday: the upside prevails.

Update on supports and resistances.
Pivot: 98.25

Our preference: Long positions above 98.25 with targets @ 98.8 & 99 in
extension.

Alternative scenario: Below 98.25 look for further downside with 98.05
& 97.85 as targets.

Comment: the next resistances are at 98.8 and then at 99.

Key levels
99.15
99
98.8
98.658 last
98.25
98.05
97.85

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

2012.08.29 03:15:04 Catalonia to Ask for $6.28 Billion in Aid from Spain

(MORE TO FOLLOW) Dow Jones Newswires

August 28, 2012 21:16 ET (01:16 GMT)

2012.08.28 18:32:25 EUR/USD intraday: the upside prevails.

EUR/USD intraday: the upside prevails.

Update on supports and resistances.
Pivot: 1.2515

Our preference: Long positions above 1.2515 with targets @ 1.257 &
1.259 in extension.

Alternative scenario: Below 1.2515 look for further downside with
1.249 & 1.2465 as targets.

Comment: the pair has broken above a declining trend line and should
reach its previous high.

Key levels
1.2625
1.259
1.257
1.25644 last
1.2515
1.249
1.2465

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

2012.08.27 18:32:30 *France's Hollande: EU Must Also Understand Greece Has Made Efforts

2012.08.27 18:32:30 *France's Hollande: EU Must Also Understand Greece
Has Made Efforts

2012.08.27 18:27:04 MARKET TALK: Pianalto Leans Toward More Easing, with Caveats

12:26 EDT - Cleveland Fed President Sandra Pianalto, an FOMC voter who
is not one for sticking her neck out with bold statements, seems to
fall in line with Chicago's Evans, who earlier called for more easing
by the Fed to boost the economy. She wasn't as unequivocal as Evans,
saying that there are benefits from further easing but arguing that
the Fed needs to be "realistic." Looks like another vote for QE next
month and another person setting up Bernanke to open the door to it in
his speech Friday. But it's also a reminder of the hesitation that
FOMC members feel toward doing another round and the frustration with
the knowledge that it won't do much. (michael.j.casey@dowjones.com)


(END) Dow Jones Newswires

August 27, 2012 12:27 ET (16:27 GMT)

2012.08.27 16:05:06 M&T To Buy Hudson City Bancorp for $3.7 Billion

NEW YORK--U.S. stocks wavered after Monday's open as Apple shares rose
to new highs on a patent victory.

The Dow Jones Industrial Average edged down six points, or 0.1%, to
13152 shortly after the opening bell, reversing earlier gains. The
Standard & Poor's 500-stock index rose three points, or 0.2%, to 1414
and the Nasdaq Composite Index added 10 points, or 0.3%, to 3080.

Apple climbed 2.4% after it won a patent battle with South Korean
rival Samsung Electronics, in which Samsung was ordered to pay Apple
$1.05 billion. Apple's advance helped put Nasdaq's 100-stock large-cap
index on track for a more than 10-year closing high.

Write to Matt Jarzemsky at Matt.Jarzemsky@dowjones.com


(END) Dow Jones Newswires

August 27, 2012 07:25 ET (11:25 GMT)

2012.08.27 12:45:38 MARKET TALK: India Bonds Higher; 10-Year Note Support At 99.50

1045 GMT [Dow Jones] India government bonds are trading higher as the
market positions itself for a weaker gross domestic product print on
Friday, says a dealer with a privately-run bank. The benchmark 8.15%
2022 bond is at 99.78 vs 99.60 at Friday's close. "The market has no
other cues to trade apart from the growth data. It is betting on
monetary easing following a weak growth even as inflation remains high
and there is no movement on economic reforms," he says. He tips the
10-year note to stay in a 99.50-99.80 band for the rest of the
session. (nupur.acharya@dowjones.com)


Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com


(END) Dow Jones Newswires

August 27, 2012 06:45 ET (10:45 GMT)

2012.08.27 10:09:22 *Taiwan Central Bank Suspected of Buying Dollars Around NT$29.95 - Traders

(END) Dow Jones Newswires

August 27, 2012 04:09 ET (08:09 GMT)

2012.08.24 23:39:50 Chicago Currency Settlement Prices

YEAR OPEN
OPEN HIGH LOW SETTLE CHG HIGH LOW INT

Japan Yen
SEP 12 1.2736 1.2749 1.2705 1.2707 -.0042 1.3087 1.1915 144,856
DEC 12 1.2746 1.2760 1.2719 1.2718 -.0041 1.3100 1.1980 1,860
Est vol 70,050 open int 146,776

Canadian Dollar
SEP 12 1.0057 1.0092 1.0048 1.0084 +.0023 1.0168 .9554 145,400
DEC 12 1.0028 1.0070 1.0028 1.0063 +.0023 1.0136 .9545 8,768
MAR 13 1.0041 1.0044 1.0018 1.0040 +.0023 1.0100 .9536 1,565
Est vol 71,208 open int 156,252

British Pound
SEP 12 1.5858 1.5870 1.5800 1.5809 -.0054 1.6276 1.5266 115,958
DEC 12 1.5844 1.5864 1.5801 1.5806 -.0054 1.6150 1.5335 1,857
Est vol 99,749 open int 117,957

Swiss Franc
SEP 12 1.0466 1.0471 1.0396 1.0428 -.0038 1.1180 1.0040 53,024
DEC 12 1.0476 1.0488 1.0437 1.0450 -.0037 1.0933 1.0131 309
Est vol 40,270 open int 53,335

(END) Dow Jones Newswires

August 24, 2012 17:39 ET (21:39 GMT)

2012.08.24 22:32:36 WSJ BLOG/MarketBeat: Train Reading: Bernanke Stands His Ground

(This story has been posted on The Wall Street Journal Online's Market
Beat blog at http://blogs.wsj.com/marketbeat.)


By Paul Vigna

Bernanke responds to Issa, defends Fed actions - WSJ

GM mulls expansion of its $5 billion credit line - WSJ

Most laid-off workers who find new jobs, if they can, take less pay - AP

Next three weeks will determine the Presidential election - Yahoo Finance

Here's a trio of China-related stories. We're not even searching for
this stuff, it just keeps crossing our transom. One might say there's
a theme growing here:

- China's in the midst of a hard-landing, Lombard Research says, and
labor's next in line to get squeezed - Barron's

- Caterpillar, other heavy-equipment makers cutting production in
China - Bloomberg

- Unwanted goods pile up as China slows down - NY Times

A musical interlude: Maxine Nightingale; Right Back Where We Started
From - YouTube

Remember Lance Armstrong in "Dodgeball"? Such innocent days - YouTube

For more MarketBeat and other streaming markets coverage from The Wall
Street Journal, point your mobile browser to wsj.com/marketspulse.


-For continuously updated news from The Wall Street Journal, see
WSJ.com at http://wsj.com.

(END) Dow Jones Newswires

August 24, 2012 16:32 ET (20:32 GMT)

2012.08.24 23:20:04 Argentine Banks Lose $92 Million in Foreign Currency Deposits Week of Aug. 17

By Ken Parks

BUENOS AIRES--Argentina's financial system lost $92 million in foreign
currency deposits last week as capital controls and a vibrant black
market for U.S. dollars spur residents to yank greenbacks out of their
bank accounts.

Foreign-currency deposits fell to $9.39 billion for the week ended
Aug. 17, down from $9.48 billion a week earlier, the central bank said
in statement Friday.

The central bank reports deposit data with a one-week lag.

Almost $6.7 billion in foreign-currency deposits have left the banking
system since President Cristina Kirchner imposed exchange controls
last October to limit capital flight that was draining the central
bank's international reserves.

Those controls have become even stricter since early May, with the
government approving only limited purchases of dollars and other hard
currency by individuals and businesses.

While controversial, the measures have dramatically slashed the
outflow of dollars from the South American nation. One measure of
capital flight tracked by the central bank showed that $1.97 billion
left the country in the second quarter, down sharply from $6.13
billion in the second quarter of 2011.

But in some ways the controls have been self defeating by undermining
confidence in the peso and the government's economic policies.

For some middle-class Argentines, the measures bring back memories of
the forced conversion of their dollar savings into pesos during a deep
economic crisis in 2002.

Argentines have long viewed U.S. dollars as a safe haven in times of
economic uncertainty because of their country's long history of high
inflation and runaway government spending, which frequently ended in
currency devaluations.

The peso weakened to close at ARS4.6265 to the U.S. dollar on the MAE
foreign-exchange wholesale market Friday, compared with ARS4.6165
Thursday.

On the black market, residents desperate to get their hands on dollars
were paying around ARS6.40, according to financial newspaper El
Cronista.


Write to Ken Parks at ken.parks@dowjones.com


(END) Dow Jones Newswires

August 24, 2012 17:20 ET (21:20 GMT)

2012.08.24 22:31:06 FOREX WEEK AHEAD: All Eyes Turn Toward Bernanke Speech

(This story has been posted on The Wall Street Journal Online's Market
Beat blog at http://blogs.wsj.com/marketbeat.)


By Paul Vigna

Bernanke responds to Issa, defends Fed actions - WSJ

GM mulls expansion of its $5 billion credit line - WSJ

Most laid-off workers who find new jobs, if they can, take less pay - AP

Next three weeks will determine the Presidential election - Yahoo Finance

Here's a trio of China-related stories. We're not even searching for
this stuff, it just keeps crossing our transom. One might say there's
a theme growing here:

- China's in the midst of a hard-landing, Lombard Research says, and
labor's next in line to get squeezed - Barron's

- Caterpillar, other heavy-equipment makers cutting production in
China - Bloomberg

- Unwanted goods pile up as China slows down - NY Times

A musical interlude: Maxine Nightingale; Right Back Where We Started
From - YouTube

Remember Lance Armstrong in "Dodgeball"? Such innocent days - YouTube

For more MarketBeat and other streaming markets coverage from The Wall
Street Journal, point your mobile browser to wsj.com/marketspulse.


-For continuously updated news from The Wall Street Journal, see
WSJ.com at http://wsj.com.

(END) Dow Jones Newswires

August 24, 2012 16:32 ET (20:32 GMT)

2012.08.24 21:15:02 Oil Turns Lower on Emergency Oil Release Talk

NEW YORK--North Sea Brent crude oil futures fell 1% late Friday amid
renewed talk about the prospects for a release from strategic consumer
stockpiles amid stubborn high prices.

The Petroleum Economist, a monthly industry journal, on its website
quoted "several sources" who said a release could come as soon as
September in response to reduced supplies from Iran. The report said
an oil release could be as much as or more than the 60-million-barrel
release last year after Libya's supplies were cut by civil war.

The report quoted one source as saying the International Energy
Agency, which has opposed the plan, now supports it but has asked the
U.S. not to make a unilateral release.

ICE Brent crude prices have risen 11.4% over the past month, outpacing
gains in the U.S. benchmark, which has gained 9.2% from a month ago to
the highest levels since early May.

ICE Brent for October recently was down 1.2%, or $1.41, at $113.60 a
barrel, while Nymex crude was 9 cents lower at $96.18 a barrel.

Write to David Bird at david.bird@dowjones.com

***

Reported earlier:

Crude Posts Slim Gains as Market Tracks Storm

By David Bird

--U.S. durable goods orders stronger than expected

--Tropical Storm Isaac could be hurricane in Gulf by early Tuesday

--Pre-storm precautionary buying erases earlier losses

NEW YORK--Crude-oil futures prices were modestly higher early Friday
on cautious pre-weekend buying as traders tracked the potential for a
hurricane early next week in the key U.S. Gulf of Mexico oil producing
and refining region.

The protective buying lifted prices from earlier slim losses that were
spurred by strength in the dollar, which discourages investors using
other currencies to stake out positions in dollar-based commodities,
like crude oil futures.

Futures had pared losses after a stronger-than-expected performance in
U.S. July durable goods orders. The Commerce Department reported a
4.2% rise in orders, with economists surveyed by Dow Jones Newswires
had expected a 3% rise.

But traders said concerns about forecasts for Tropical Storm Isaac to
strengthen into a hurricane in the U.S. Gulf by Tuesday brought buyers
off the sidelines. The potential for at least a temporary disruption
of Gulf output comes as tightening oil inventories in the world's
biggest oil consumer have pushed prices to their highest level since
early May in recent days. Heightened tensions in the Middle East and
increased rhetoric between Israel and Iran also argues against betting
against a steep price fall in the near term, traders said.

"There's a lot of underlying anxiety about Iran," said Andy Lebow,
senior vice president of energy futures at Jeffries Bache, noting a
New York Times report that international nuclear inspectors will
report soon that Iran may be speeding up production of nuclear fuel.
Stricter sanctions on Iran, including a European Union ban on oil
imports, has kept a premium in oil prices in recent months, analysts
said, despite moves by other producers to cover lost volumes.

October-delivery crude oil futures on the New York Mercantile Exchange
were trading 23 cents higher, at $96.50 a barrel. ICE October Brent
crude oil futures were 29 cents lower, at $114.73 a barrel.

In its 8 a.m. EDT advisory, the National Hurricane Center said
Tropical Storm Isaac's winds had picked up to 50 miles per hour as it
moved westward through the Caribbean and was expected to turn to the
northwest Friday evening. In its forecast tracking model, the NHC
shows Isaac moving over the island of Hispaniola later Friday and over
southeastern Cuba on Saturday.

By early late Sunday or early Monday, the tropical storm is expected
to make its approach to Florida, possibly passing along the state's
western coastline during the day before strengthening to hurricane
status in the Gulf by early Tuesday, the NHC said.

A landfall is expected around 2 a.m. EDT Wednesday anywhere from the
central Louisiana coastline to Florida--with the Florida panhandle and
Alabama coast border area at the mid-point of the NHC track.

Reformulated gasoline blendstock futures were trading higher for a
fifth day Friday, after rising 2.9%, or 8.8 cents, so far this week
and settling Thursday at the highest price since April 30. September
RBOB was 0.31 cent higher, at $3.1189 a gallon.

Heating oil for September was up 0.14 cent at $3.1344 a gallon. Prices
gained four cents this week, settling Thursday at the highest level
since May 2.

Write to David Bird at david.bird@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

August 24, 2012 03:15 ET (07:15 GMT)

2012.08.24 18:28:20 USD/JPY intraday: the downside prevails.

USD/JPY intraday: the downside prevails.

Update on supports and resistances.
Pivot: 78.7

Our preference: Short positions below 78.7 with targets @ 78.25 & 78.1
in extension.

Alternative scenario: Above 78.7 look for further upside with 78.9 &
79.05 as targets.

Comment: the pair is rebounding but stands below its resistance.

Key levels
79.05
78.9
78.7
78.64 last
78.25
78.1
77.9

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

2012.08.24 17:31:30 MARKET TALK: Stocks Extend Rally as Stimulus Hopes Re-Emerge

11:31 EDT - US stocks climb to session highs, now posting solid gains
after Thursday's selloff amid increased prospects for more Fed
stimulus. In a letter to Rep. Darrell Issa (R., Calif.) dated
Wednesday, a copy of which was obtained by The Wall Street Journal,
Bernanke wrote, "There is scope for further action by the Federal
Reserve to ease financial conditions to strengthen the recovery."
Funny how this letter came out two days after it was written, and one
day after St. Louis Fed President Bullard damped hopes for more
stimulus by saying recent data suggested it wasn't needed. The Dow
industrials is up 77 at 13134. (tomi.kilgore@dowjones.com)


(END) Dow Jones Newswires

August 24, 2012 11:31 ET (15:31 GMT)

2012.08.24 17:28:47 *ECB Considering Setting Yield Band Targets -Reuters

(MORE TO FOLLOW) Dow Jones Newswires

August 24, 2012 11:28 ET (15:28 GMT)

2012.08.24 14:33:51 MARKET TALK: Flying High Aircraft Pulls up Durable Goods Orders

--Stock futures slip on back of Europe concerns

--Europe markets decline as Greece's meeting with Germany, U.K. data weigh

--Durable goods in July expected to increase 0.3%

NEW YORK--U.S. stock futures edged lower ahead of durable goods data,
with concerns about Europe's sovereign-debt situation and slowing
economy giving investors reason to move cautiously.

About 90 minutes ahead of the open, Dow Jones Industrial Average
futures slipped 11 points, or 0.1%, to 13028. The Dow fell 115 points
on Thursday to suffer a fourth-consecutive loss, the longest since the
four-session stretch ending Aug. 2.

Standard & Poor's 500-stock index futures eased two points, or 0.1%,
to 1398 and Nasdaq 100 futures gave up two points, or 0.1%, to 2759.
Changes in stock futures don't always accurately predict stock moves
after the opening bell.

Data on durable goods orders in July are due out at 8:30 a.m. EDT. The
median estimate of economists surveyed by Dow Jones Newswires is for a
monthly increase of 3% after rising 1.6% in June.

European markets slipped, with the Stoxx Europe 600 down 0.3%, with
Greece's meeting with Germany and data confirming contraction in the
U.K. economy weighing on sentiment.

German Chancellor Angela Merkel Greece said she wanted to keep Greece
in the euro zone, but she didn't commit to granting Greece more time
to implement austerity measures required for the country to receive
bailout funds.

In the U.K., second-quarter gross domestic product was revised to show
it shrank 0.5%, marking a third-consecutive quarter of contraction.
GDP was previously estimated to have declined 0.7%.

Asian markets fell sharply on the back of U.S. weakness, with China's
Shanghai Composite shedding 1% to close at a 3 1/2-year low and
Japan's Nikkei Stock Average falling 1.2%.

Crude oil futures lost 0.6% to $95.70 a barrel, while gold futures
declined 0.4% to $1,666 an ounce. The dollar gained against the euro
but lost some ground against the yen.

In corporate news, shares of Eli Lilly rallied 5% in premarket trading
after the drug maker said that although late-stage trials for its
Alzheimer's treatment didn't meet primary goals, there was some
statistically-significant improvement in some patients.

Autodesk tumbled 23% after the company, which makes 3D design
software, reported fiscal second-quarter results that fell short of
expectations as provided by FactSet, provided a downbeat outlook for
the third quarter and said it plans to reduce staff as part of
cost-cutting efforts.

Salesforce.com slid 4.6% after the business-software maker reported
fiscal second-quarter earnings that topped analyst estimates, but
provided a third-quarter and full-year outlook that was below current
projections.

Aruba Networks rallied 15% after the mobile network company reported
fiscal fourth-quarter earnings and revenue that beat estimates, citing
strong improvement in gross and operating margins.

-Write to Tomi Kilgore at tomi.kilgore@dowjones.com

HOT STOCKS TO WATCH

Among the companies with shares expected to actively trade in Friday's
session are Autodesk Inc. (ADSK), Aruba Networks Inc. (ARUN) and
Salesforce.com Inc. (CRM).

Design software maker Autodesk's fiscal second-quarter profit fell
9.3%, and the company said it plans to reduce its staff in a
restructuring effort to address a shift to cloud and mobile computing.
Revenue missed Autodesk's expectations and the company lowered its
full-year revenue guidance. Shares plunged 21% to $28.10 after hours.

Aruba Networks swung to a loss in the fiscal fourth-quarter on a
year-earlier tax benefit of $72.8 million, though the WiFi-equipment
maker posted strong revenue growth. Shares rose 15% to $19.48 after
hours as adjusted earnings and revenue exceeded expectations.

Salesforce.com posted a fiscal second-quarter loss as operating costs
and stock-based expenses jumped, although the company's top-line
growth and quarterly billings exceeded expectations. Shares slumped
5.1% to $139.30 after hours on lower guidance for per-share earnings
in the current quarter and a modest decline in the growth rate of
deferred revenue, which is a critical measure of future revenue for
its subscription-based business model.

Solera Holdings Inc.'s (SLH) fiscal fourth-quarter profit grew a
better-than-expected 21% as the auto-insurance software maker posted
stronger results from its insurance-company customers. However, shares
slid 4% to $41 after hours as the company provided downbeat guidance
for the new fiscal year.

Syneron Medical Ltd. (ELOS) said its Chief Financial Officer Asaf
Alperovitz has resigned to pursue a new career opportunity and has
appointed David Schlachet, its former chief executive, as interim CFO.
Shares slipped 3.1% to $9.50 after hours.

Watchlist:

Bebe Stores Inc.'s (BEBE) fiscal fourth-quarter earnings fell 36% as
the women's clothing retailer saw lower same-store sales weaken
revenue.

Brinker International Inc. (EAT) approved the repurchase of an
additional $500 million in stock, and boosted its dividend, as it aims
to increase shareholder returns.

Bristol-Myers Squibb Co. (BMY) said Thursday it has discontinued the
development of a drug intended to treat the liver disease hepatitis C
in the interest of patient safety, after a patient died and others
were hospitalized.

Mentor Graphics Corp.'s (MENT) fiscal second-quarter earnings more
than quadrupled as the chip-design software company reported strong
revenue gains in its system and software business.

Panera Bread Co. (PNRA) has authorized up to $600 million in share
repurchases as the bakery-cafe chain looks to increase shareholder
returns.

A QEP Resources Inc. (QEP) unit reached two agreements to acquire
oil-development properties in the Williston Basin in North Dakota from
multiple sellers in deals with a combined value of roughly $1.38
billion.

Qualcomm Inc. (QCOM) said it purchased chip maker DesignArt Networks,
giving the company new system-on-chip and mobile offerings.

Rue21 Inc.'s (RUE) fiscal second-quarter earnings rose 19% as the
value-oriented teen-apparel retailer continued to add stores and
increase revenue.

Shoe Carnival Inc.'s (SCVL) fiscal second-quarter earnings rose 5.3%
as strong sales of athletic shoes helped offset the expense of opening
new stores.

Watson Pharmaceuticals Inc. (WPI) said a subsidiary has received final
approval from the U.S. Food and Drug Administration for a generic
equivalent of Endo Health Solutions Inc.'s (ENDP) Lidoderm pain-relief
patch.

Write to Nathalie Tadena at nathalie.tadena@dowjones.com


(END) Dow Jones Newswires

August 24, 2012 06:45 ET (10:45 GMT)

2012.08.24 09:11:22 *ECB: Deposit Facility Use Thu EUR329.92B vs EUR335.51B Wed

(MORE TO FOLLOW) Dow Jones Newswires

August 24, 2012 03:11 ET (07:11 GMT)

2012.08.24 07:45:00 FOREX FOCUS: The FOMC Shouldn't Damage the Dollar

--Fed may not rush into more QE despite dovish minutes

--Monetary easing still more likely elsewhere in the world

--Slower growth data from euro zone, U.K., Japan and China


(This column was first published on Thursday.)


By Nicholas Hastings


Don't dump the dollar.

Although the immediate reaction to Wednesday's
more-dovish-than-expected Federal Open Market Committee minutes has
been to do just that.

In the document, Fed members said they are ready to pull the trigger
on more quantitative easing if economic data doesn't soon improve.
Within minutes, the U.S. currency found itself being sold against most
other majors and against some minors too.

But this looks much more like just a knee-jerk reaction to the
prospect of lower U.S. yields, rather than a considered judgment.

First, the chances are that the Fed may not ease policy again and, if
it does, it may not move right now. And second, look at the
alternatives. The euro, the yen, the pound and even the Aussie dollar
have even greater problems of their own.

But first the Fed.

U.S. data that has emerged since the FOMC meeting was held at the
start of the month has all largely been positive. And it is more than
likely that even more good numbers will emerge before the next FOMC on
Sept. 13, including the latest set of non-farm payrolls on Sept. 7.

But even before then the market will get a better gauge of the Fed's
mood when its chairman, Ben Bernanke, gives his key speech at the
annual gathering of leading economists at Jackson Hole in Wyoming at
the end of this month.

And the gauge may yet prove a lot less dovish than the recent minutes
suggest. Remember, as much as Mr. Bernanke and co want to keep markets
happy with promises of more easing, they might prefer to wait until
after November's presidential election and any possible charges of
political favoritism are out of the way.

While all this talk of easier Fed policy may fade again, the pressures
on other major central banks continue to intensify.

The most obvious case is the European Central Bank, which is
desperately seeking a solution that will put a cap on the yield of
debtor countries and prevent the euro-zone crisis from spreading.

Pressure on the ECB to come up with a suitable proposal for injecting
more liquidity will become more intense in the weeks to come as
Germany remains undecided on whether to prevent Greece from falling
out of the euro zone.

Recent data, including the latest purchasing managers' indexes on
Thursday, suggest that while Germany is being infected by the problems
of weaker euro-zone countries, the country isn't suffering enough to
sway public opinion.

According to Carsten Brzeski, a strategist with ING Financial Markets,
this means that Angela Merkel will find it that much more difficult to
get public support for another Greek bailout.

"As a consequence, Chancellor Merkel looks likely to continue with her
gradual strategy towards conditional integration."

And for the ECB, this means even more pressure to stop contagion.

For the Bank of England, this also isn't good news. A protracted
crisis in the euro zone means a protracted recession in the U.K.

With new budget figures showing that the government's deficit is
growing even more rapidly than expected and that more fiscal
tightening might be needed, the central bank will once again be
expected to run to the rescue.

Things aren't any better on the other side of the world.

Repeated attempts by the Bank of Japan to stimulate the Japanese
economy have failed and with recent trade data showing a collapse in
exports to places such as the euro zone and China over the last year,
the central bank will once again be expected to ease policy.

In China, meanwhile, slower global growth prospects are also taking
their toll with new data showing that private sector manufacturing has
fallen even further into contraction. This is likely to raise
expectations of another easing in Chinese monetary policy as well.

In Australia, strong domestic growth has allowed the Reserve Bank of
Australia to put off any further rate cuts for now. But this may not
last long as weaker manufacturing activity in China will reduce demand
for Australian commodities and probably bring a swift end to the
country's recent mining boom.

The RBA will find that it is no longer an exception and that Aussie
rates will have to start coming down as well.

So even dollar bears who will look for alternatives to the U.S.
currency could find there are not many places to go and that, despite
the latest misgivings about U.S. policy, the dollar is still a safer
bet for now.


(Nicholas Hastings is a Senior Correspondent in London for Dow Jones
Newswires who has written about foreign exchange for more than 20
years. He previously covered a variety of markets, including equities,
fixed income, commodities and energy. He can be contacted on
+44-20-7842-9493 or by email: nick.hastings@dowjones.com or on twitter
@NickHastingsDJ)


(END) Dow Jones Newswires

August 24, 2012 01:45 ET (05:45 GMT)

2012.08.22 16:19:51 BlackRock Exec: New ECB Bond-Buying Plan to be Stronger Than Last

--ECB's planned bond-market intervention is likely to have a lasting
positive impact, says BlackRock exec

--Spain likely to wait until after September auction before requesting aid

--ECB rhetoric, commitment to sizeable bond purchases, key to success of plan


By Nick Cawley and Tommy Stubbington

The European Central Bank will likely learn from weaknesses in its
previous bond-buying program and ensure any future purchases are large
and aggressive enough to prompt a positive turnaround in the euro
bloc's long-running debt crisis, Michael Krautzberger, head of
European fixed income at BlackRock Inc. (BLK), said in an interview
with Dow Jones Newswires.

Mr. Krautzberger at BlackRock--the world's largest money manager--said
that ECB President Mario Draghi's recent public commitment to do
"whatever it takes" within the central bank's mandate to tackle the
euro-zone malaise represents a "milestone in the crisis." The ECB will
take lessons from its earlier now-dormant original bond-buying
program, which failed to control rising yields in fiscally-frail euro
member states, he said.

While he would be "stunned" if the central bank published specific
upper limits on bond yields for any particular countries, as some
press reports have recently suggested, Mr. Krautzberger said such an
approach is not essential for bolstering confidence.

"Rhetoric and size is more important than the form the bond-buying
program takes," said Mr. Krautzberger at the fund, which manages
assets worth $3.35 trillion.

"Past ECB rhetoric around interventions was uncoordinated and never
had the power to turn the market, but this is a significant step-up in
the power of intervention," Mr. Krautzberger said. Having the ECB as a
safety net when buying government bonds is a key part of making the
fund "less defensive than at other points in the crisis... Every
financial asset needs a buyer of last resort," he said.

The ECB first started buying under-pressure bonds for Greece in May
2010, later expanding the scheme to encompass Ireland, Portugal, Italy
and Spain. But it has not bought bonds in the open market for 23
weeks, in a move seen as forcing governments in the euro area to fix
tax and spending issues.

When it bought bonds in the past, the ECB's interventions were
volatility-fighting responses to selloffs. Purchases were disclosed in
aggregate totals, but the ECB didn't say when it was active in the
market, and nor did it disclose in advance the countries whose bonds
it would buy. That was seen as a defensive policy, and it failed to
achieve its aim of trimming borrowing costs.

In the monthly ECB press conference Aug. 2, ECB President Mario Draghi
pledged that the central bank would buy short-dated Spanish and
Italian government debt to force borrowing costs lower--a statement
that Mr. Krautzberger described as a "very sensible recognition of
reality."

The change of tone has already led BlackRock to boost its holdings of
Spanish and Italian debt.

"We are overweight Italy, while we are pretty neutral on Spain, from
having an underweight position [previously]," Mr. Krautzberger said.

Considerable uncertainties remain over the structure of the new
bond-buying program. The ECB distanced itself earlier this week from
reports that it planned to cap Spanish and Italian yields at
pre-determined levels, saying that it is misleading to speculate on
decisions that had not yet been taken.

Some analysts expect a more structured style of bond-buying than the
first round, along the lines of the Bank of England's quantitative
easing program, where the relevant bonds to be bought, along with
dates and amounts, are all announced in advance.

That would be "more powerful" than the earlier ad-hoc model, but
either method would have the potential to force borrowing costs lower,
provided the ECB is prepared to intervene with sufficient size,
according to Mr. Krautzberger.

Still, hurdles remain before the ECB can pull the trigger on a fresh
round of bond purchases. Mr. Draghi has made it clear that the central
bank will intervene only if fiscally-frail member states ask for aid,
enrol in a formal cost-cutting program and adhere to a strict set of
economic reform pledges.

Spanish Prime Minister Mariano Rajoy has requested open-ended bond
purchases of his country's debt by the ECB, but he has so far not
taken the first crucial step towards that: signing up to the rigors of
a full bailout through the euro-zone's temporary rescue fund.

Mr. Krautzberger expects a government debt bailout request from Madrid
to materialize sooner or later, although the recent benign tone in
bond markets will encourage the Spanish government to wait until after
its next major bond auction in early September, when it can better
gauge investor demand for Spanish debt.

While the current optimistic tone that the ECB will act forcefully to
keep fiscally-frail countries' borrowing costs lower for longer has
pushed yields to multi-month lows, Mr. Krautzberger feels that the
central bank will have to maintain a consistent message to keep
investors on-side and not let borrowing costs return to unsustainably
high levels.

This "only works if the ECB continues to be determined both in speech
and deeds," he said.


Write to Nick Cawley at nick.cawley@dowjones.com and Tommy Stubbington
at tommy.stubbington@dowjones.com


(END) Dow Jones Newswires

August 22, 2012 10:19 ET (14:19 GMT)

2012.08.22 15:49:58 MARKET TALK: Euro Likely to Take Another Crack at $1.25 Soon

9:49 EDT - CMC joins those calling today's modest retreat for the euro
mere profit-taking after its 1% climb Tuesday. "We'll probably drift
down to $1.2410 before rallying again to the $1.25 level," it says.
The euro is down 0.2% today at $1.2445, according to CQG.
(ira.iosebashvili@dowjones.com)

(END) Dow Jones Newswires

August 22, 2012 09:49 ET (13:49 GMT)

2012.08.22 10:08:03 *S Africa Annual Inflation Rate Drops to 4.9% In July

(MORE TO FOLLOW) Dow Jones Newswires

August 22, 2012 04:08 ET (08:08 GMT)

2012.08.22 05:43:23 MARKET TALK: USD/INR Lower; 55.40 Support Tipped

GBP/JPY intraday: intraday support around 124.85.

Update on supports and resistances.
Pivot: 124.85

Our preference: Long positions above 124.85 with targets @ 125.45 &
125.8 in extension.

Alternative scenario: Below 124.85 look for further downside with
124.45 & 124.15 as targets.

Comment: a support base at 124.85 has formed and has allowed for a
temporary stabilisation.

Key levels
126.45
125.8
125.45
125.026 last
124.85
124.45
124.15

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume

20.08.2012 00:02 Up

2012.08.22 04:20:22 MARKET TALK: USD/CNH Biased Down; Tipped In 6.3530-6.3630 Band

0220 GMT [Dow Jones] The USD/CNH, or offshore USD/CNY falls to 6.3575
vs 6.3588 late Tuesday in Asia, tracking the lower onshore USD/CNY
fixing by the PBOC, says a senior trader at a U.K. bank. "The EUR's
recent rise against the USD is also weighing on the offshore pair,
keeping the USD/CNH downwardly biased," the trader adds. He tips the
pair to trade in a 6.3530-6.3630 band in the near term. The PBOC set
the central parity for the onshore USD/CNY at 6.3348 vs Tuesday's
6.3418. (chester.yung@dowjones.com)


Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com


(END) Dow Jones Newswires

August 21, 2012 22:20 ET (02:20 GMT)

2012.08.22 02:50:50 MARKET TALK: USD/PHP May Retreat; 42.10 Support Eyed

0050 GMT [Dow Jones] The USD/PHP may head lower on expectations of
heavy inflows from overseas Filipino workers that accumulated over the
four-day break. The pair may head towards 42.20, then 42.10 from 42.42
late Friday. "Inflows will definitely support the peso, plus regional
currencies have recovered a bit and we will try to play catch up,"
says a local bank trader. He tips next resistance at 42.50. Philippine
financial markets were closed Monday and Tuesday.
(rhea.sandique-carlos@dowjones.com)


Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com


(END) Dow Jones Newswires

August 21, 2012 20:50 ET (00:50 GMT)

2012.08.22 01:15:03 Thomson Reuters FX Platform Suffers Outage

Thomson Reuters Corp.'s (TRI) electronic trading platform, one of the
two largest systems used by currency traders around the world,
experienced an outage Tuesday.

A system notice sent to Thomson Reuters's clients, and reviewed by Dow
Jones Newswires, said the firm's currency matching service was
unavailable between 1847 GMT and 2030 GMT (2:47 p.m. EDT and 4:30 p.m.
EDT).

"We have identified the cause of this disruption in a third-party
database and have made sure extra controls are in place to ensure
there is no repeat of this occurrence," a spokesman for the company
said in an email.

Despite the global reach of the outage, traders noted little market
impact. Many traders instead used back-up systems already in place,
while others simply closed down trading on an already quiet session.

"Lucky this happened on a quiet day," said Lanyee Chan, a senior
interbank trader at Union Bank of California.

A representative for Thomson Reuters wasn't immediately available for comment.

Even though the trading impact was minimal, some market participants
said there could be ramifications for Thomson Reuters itself, which
earlier this week completed its acquisition of electronic
foreign-exchange trading system FX Alliance Inc. (FX), known as FXall.
That purchase was meant to add FXall's client base of asset managers,
corporations, hedge funds and others to a largely bank trading service
run by Thomson Reuters.

"From Reuters's perspective, the real catastrophic aspect of this
isn't lost revenue or damage to reputation, more that they are
inadvertently forcing the market to not rely on them," said Erik
Lehtis, Consulting Inc., a consultant specializing in FX
high-frequency trading, and a former trader.

During the outage, traders at Bank of New York Mellon Corp. (BK) said
they were routing their trades through EBS, the other major currency
platform.

In July, the most recent data month available, the electronic
currencies-dealing system run by Thomson Reuters extended its lead
ahead over main rival EBS, a unit of ICAP PLC (IAPLY, IAP.LN) , with
its average daily volume outstripping those of its main rival for the
10th straight month.

In July, Thomson Reuters said it had handled an average of $130
billion of trading volumes per day, a 10% fall from June and a 14%
drop from the same time last year. But flows were still higher than
those on EBS, which saw an average of $106.7 billion per day in the
same month--22% below the previous month and some 41% lower on the
year.

Some foreign-exchange competitors of Thomson Reuters, which produces
news that competes with News Corp.'s (NWSA, NWS) Dow Jones & Co.,
publisher of The Wall Street Journal and Dow Jones Newswires, said
they experienced a slight uptick in volume following the outage.

Charles St-Arnaud, a currency strategist at Nomura in New York, said
the outage made it harder to perform transactions on lower volume
currencies such as the Mexican peso. He noted that bid-ask
spreads--the difference between how much investors are willing to buy
and sell a particularly currency pair--were "probably wider than you
normally see" due to reduced liquidity.

-Geoffrey Rogow contributed to this article.

Write to Ira Iosebashvili at ira.iosebashvili@dowjones.com, Jacob
Bunge at jacob.bunge@dowjones.com and Nicole Hong at
nicole.hong@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

August 21, 2012 17:05 ET (21:05 GMT)

2012.08.21 23:05:05 Oil Futures Settle at 3-Month High as Euro Rallies

--Euro trading at highest level since early July on optimism about euro zone

--Nymex September crude gains 71 cents to settle at $96.68 a barrel

--Analysts expect a 200,000-barrel rise in crude oil inventories in
EIA's weekly report Wednesday

NEW YORK--Crude-oil futures hit their highest settlement price since
May amid market optimism that struggling euro-zone nations will
receive regional assistance to strengthen their economies.

Light, sweet crude for September delivery rose 71 cents, or 0.7%, to
settle at $96.68 a barrel on the New York Mercantile Exchange. The
September contract expired at the close of the session. The most
actively traded October-delivery contract rose 58 cents, or 0.6%, to
settle at $96.84 a barrel. Brent crude on ICE Futures Europe rose 94
cents, or 0.8%, to settle at $114.64 a barrel.

"The market is obviously on a bull run here," said Andy Lebow, a
broker for Jefferies Bache. "It thinks that the situation in Europe is
going to improve."

The euro hit its highest level since early July--recently trading at
$1.24696 against the U.S. dollar--on hopes that euro-zone leaders
would announce new measures to assist regional economies. Greek Prime
Minister Antonis Samaras has meetings with euro-zone officials and
heads of state later this week.

A weaker dollar makes dollar-denominated commodities more affordable
for traders using foreign currencies.

Oil futures rallied in tandem with the commodity sector as a whole,
but demand for crude oil is insufficient to support the price rise,
Mr. Lebow said.

Still, macroeconomic factors are driving oil more strongly than market
fundamentals, said Phil Flynn, an analyst at Price Futures Group in
Chicago.

"As long as the market believes that they're going to get a bailout
and they're going to get a deal to get things done, it's going to be
very bullish in the short term," Mr. Flynn said.

Investors are awaiting the Energy Information Administration's weekly
U.S. inventory survey, which will be released at 10:30 a.m. EDT
Wednesday.

Analysts are expecting a 200,000-barrel rise in crude oil inventories
in the week ended Friday, according to a Dow Jones Newswires survey.
Analysts also expect a 400,000-barrel drop in gasoline inventories, a
700,000-barrel increase in distillate stocks and a decline in refinery
utilization by 0.2 percentage point.

The American Petroleum Institute, an industry group, said in its own
survey released late Tuesday that U.S. crude stockpiles fell by 6.041
million barrels in the week ended Aug. 17. The API survey also said
gasoline stocks rose by 869,000 barrels and distillate stocks fell by
1.017 million barrels. Refinery runs fell by 0.5 percentage point to
92.1% of capacity, according to the survey.

Market participants are also eyeing the Wednesday release of the most
recent meeting minutes from the Federal Reserve's policy-making arm.

Front-month September reformulated gasoline blendstock, or RBOB, rose
3.44 cents, or 1.1%, to $3.0652 a gallon. September heating oil rose
3.12 cents, or 1%, to $3.1243 a gallon.

Write to Nicole Friedman at nicole.friedman@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

August 21, 2012 07:25 ET (11:25 GMT)

2012.08.21 21:50:21 Interbank Foreign Exchange Rates At 15:50 EST / 1950 GMT

Latest Previous %Chg Daily
Daily %Chg
Dollar Rates Close High
Low 12/31


USD/JPY Japan 79.23-26 79.40-45 -0.23 79.53
79.24 +3.03
EUR/USD Euro 1.2458-62 1.2343-47 +0.93 1.2487
1.2344 -3.86
GBP/USD U.K. 1.5775-80 1.5708-12 +0.43 1.5804
1.5706 +1.52
USD/CHF Switzerland 0.9635-40 0.9728-32 -0.95 0.9732
0.9620 +2.83
USD/CAD Canada 0.9893-98 0.9883-88 +0.10 0.9899
0.9844 -3.08
AUD/USD Australia 1.0472-76 1.0443-46 +0.28 1.0520
1.0442 +2.60
NZD/USD New Zealand 0.8101-06 0.8083-89 +0.21 0.8144
0.8086 +4.21

Euro Rates

EUR/JPY Japan 98.73-78 98.03-07 +0.72 99.18
97.98 -0.81
EUR/GBP U.K. 0.7898-00 0.7857-60 +0.51 0.7910
0.7856 -6.60
EUR/CHF Switzerland 1.2008-12 1.2009-13 -0.01 1.2017
1.2006 -1.33
EUR/CAD Canada 1.2325-34 1.2200-08 +1.03 1.2341
1.2196 -6.82
EUR/AUD Australia 1.1893-900 1.1817-22 +0.65 1.1909
1.1770 -6.29
EUR/DKK Denmark 7.4357-582 7.4440-83 +0.01 7.4563
7.4374 +0.16
EUR/NOK Norway 7.3245-332 7.3058-122 +0.27 7.3379
7.3004 -5.38
EUR/SEK Sweden 8.2979-3080 8.2369-481 +0.73 8.3117
8.2268 -6.88
EUR/CZK Czech Rep. 24.468-5.147 24.807-903 -0.19 24.896
24.745 -3.08
EUR/HUF Hungary 275.67-6.70 276.84-7.48 -0.35 277.04
274.58 -12.35
EUR/PLN Poland 4.0719-828 4.0644-707 +0.24 4.0770
4.0574 -8.73

Yen Rates

AUD/JPY Australia 82.97-3.02 82.92-99 +0.05 83.57
82.92 +6.10
GBP/JPY U.K. 124.99-5.07 124.72-83 +0.20 125.51
124.64 +4.59
CAD/JPY Canada 80.05-12 80.30-39 -0.33 80.68
80.05 +6.31
NZD/JPY New Zealand 64.18-25 64.18-27 -0.01 64.71
64.17 +7.37

Other Dollar Rates

USD/CZK Czech Rep. 19.639-20.180 20.097-171 -1.12 20.159
19.832 +0.80
USD/HUF Hungary 221.26-2.04 224.27-76 -1.28 224.37
220.40 -8.84
USD/DKK Denmark 5.9681-848 6.0306-30 -0.92 6.0322
5.9634 +4.17
USD/NOK Norway 5.8788-844 5.9186-226 -0.66 5.9258
5.8700 -1.59
USD/PLZ Poland 3.2682-762 3.2926-73 -0.69 3.2961
3.2528 -5.07
USD/RUB Russia 31.775-876 32.026-86 -0.72 32.075
31.690 -1.01
USD/SEK Sweden 6.6601-66 6.6727-809 -0.20 6.6810
6.6316 -3.15
USD/ZAR S. Africa 8.2606-92 8.3292-415 -0.84 8.3327
8.2136 +2.20

USD/CNY China 6.3561-82 6.3593-614 -0.05 6.3597
6.3576 +0.60
USD/HKD Hong Kong 7.7565-74 7.7570-76 0.00 7.7572
7.7566 -0.13
USD/MYR Malaysia 3.1297-362 3.1290-356 +0.02 3.1305
3.1294 -1.40
USD/INR India 55.303-18 55.498-513 -0.35 55.730
55.318 +4.31
USD/IDR Indonesia 9460-520 9490-90 0.00 9465
9515 +5.06
USD/PHP Philippines 42.124-366 42.224-468 -0.24 42.245
42.346 -3.66
USD/SGD Singapore 1.2498-510 1.2529-35 -0.22 1.2530
1.2486 -3.55
USD/KRW S. Korea 1130.29-2.80 1134.59-7.00 -0.37 1134.99
1131.30 -2.50
USD/TWD Taiwan 29.919-80 29.969-30 -0.17 29.989
29.970 -1.04
USD/THB Thailand 31.385-442 31.481-544 -0.31 31.498
31.396 -0.59
USD/VND Vietnam 20512-1166 20810-85 -0.04 20815
20865 -0.94

USD/BRR Brazil 2.0163-94 2.0161-92 +0.01 2.0205
2.0090 +8.16
USD/MXN Mexico 13.1478-544 13.1018-86 +0.35 13.1679
13.0376 -5.70
USD/ARS Argentina 4.6137-210 4.6118-92 +0.04 4.6169
4.6036 +7.16

Source: ICAP Plc.

(END) Dow Jones Newswires

August 21, 2012 15:50 ET (19:50 GMT)

2012.08.21 21:29:55 UBS Shuffles FICC Chiefs in Americas as Eric Rosen Set to Depart

By Katy Burne

UBS AG (UBS, UBSN.VX) has made senior management changes in its
fixed-income, currencies and commodities unit, including the
appointment of Matthew Zola as sole head of FICC in the Americas ahead
of the departure of regional co-head Eric Rosen.

The leadership shuffle, detailed in an internal memo seen by Dow Jones
Newswires, was announced internally Tuesday by Roberto Hoornweg and
Rajeev Misra, global co-heads of the Swiss banking company's
fixed-income, currencies and commodities division.

Mr. Zola will retain his existing title as global head of FICC
distribution and structuring in addition to serving as sole head of
FICC in the Americas, reporting to Mr. Hoornweg and Mr. Misra. Mr.
Rosen is set to leave the firm in September, according to the memo.

Separately, Philip Olesen will relocate from London, where he is
global risk manager for the FICC unit, to become head of credit
trading in the Americas. Mr. Olesen had previously served as risk
manager for credit flow trading in the U.S. and head of U.S.
investment-grade credit research.

Write to Katy Burne at katy.burne@dowjones.com


(END) Dow Jones Newswires

August 21, 2012 15:29 ET (19:29 GMT)

2012.08.21 18:59:21 J.P. Morgan Trade Weighted Effective Exchange Rate Index

Tuesday Monday
U.S. Dollar 81.9 82.2
Canadian Dollar 143.0 142.7
Euro 115.4 114.5
Sterling 81.9 81.9
Yen 117.6 118.0

J.P. Morgan calculates the daily exchange rate indices - based upon a
2000 average
equalling 100. Depreciation or appreciation of each currency is
against a basket of
other currencies, weighted by each country's bilateral
manufactures trade pattern.

c-correction

(END) Dow Jones Newswires

August 21, 2012 12:59 ET (16:59 GMT)

2012.08.21 12:31:51 MARKET TALK: US Stock Futures Up as Europe Investors Upbeat

6:31 EDT - US stock-index futures are higher, following European gains
that are occurring despite UK data that show just how weak the global
economy is. New orders have sunk anew this month, a top-of-the-hour
report said, showing that the UK recession likely has at least several
more months to it. But both the pound and euro are up strongly against
the dollar amid continued ECB stimulus hopes and what's being
described as a solid Spanish debt auction, with T-bill yields far
below last month's levels. It's more quiet newswise in the US, so
Spain paying "only" 3.3% interest on 18-month debt seemingly will have
to count as a lead market driver today. Dow-industrial futures are up
28 points while the S&P 500 gains 3. (kevin.kingsbury@dowjones.com)

(END) Dow Jones Newswires

August 21, 2012 06:31 ET (10:31 GMT)

2012.08.21 12:17:41 DATA SNAP: UK Manufacturers Expect Output to Stall as Demand Slides

By Ilona Billington And Alex Brittain


LONDON--U.K. manufacturers expect to hold output levels steady over
the coming three months as new orders sank to the lowest balance in
2012, reflecting a steep drop in overseas demand, the Confederation of
British Industry said Tuesday.

The industrial output balance was 0 in August compared with +11 in the
July survey. The balance is calculated by subtracting the proportion
of manufacturers expecting a drop in output from the proportion
expecting an increase.

Total new orders slumped to a balance of -21 in August. That was the
lowest balance since -23 in December 2011 and compares with -6 in
July. Export orders, meanwhile, also slipped to a balance of -17 in
August from July's -9.

"Overall demand for manufactured goods has eased this month, led by a
weakening in the consumer goods sector following a strong July
figure," said Anna Leach, head of economic analysis for the CBI.

"The economic environment for U.K. manufacturers remains challenging,
with domestic demand relatively muted and the ongoing euro-zone crisis
now seeming to drag on broader global economic momentum," Ms. Leach
said.

The CBI survey follows the steep contraction in the July manufacturing
purchasing managers index to 45.4 from 48.4 in June and suggests
output in the third quarter of the year got off to a disappointing
start.

Other details of the CBI survey were also downbeat. Manufacturers are
planning to increase the prices they charge for goods in September,
after expectations to cut prices in August. Stock levels, meanwhile,
were a little lower at a balance of +9 in August from +14 in July.

The survey was carried out between July 25 and August 15. A total of
456 manufacturers responded.


Website: http://www.cbi.org.uk


Write to Ilona Billington at ilona.billington@dowjones.com


(END) Dow Jones Newswires

August 21, 2012 06:17 ET (10:17 GMT)

2012.08.21 10:24:13 ATP Director Rohde Named New Danish Central Bank Governor

By Anna Molin


ATP pension director Lars Rohde has been named as the new governor of
the central bank of Denmark, the Danish government said Tuesday.

Mr. Rohde will succeed Governor Nils Bernstein who is stepping down
from the post at the end of January 2013, the prime minister's office
said in a press release.

"Lars Rohde is very suitable for solving the tasks faced by
Nationalbanken," Prime Minister Helle Thorning-Schmidt said in a
statement.


Write to Anna Molin at anna.molin@dowjones.com; Twitter: @DowJonesNordics


(END) Dow Jones Newswires

August 21, 2012 04:24 ET (08:24 GMT)

2012.08.21 09:44:48 *Fitch's Riley: Italy Facing Political, Not Economic Or Fiscal Risk

(MORE TO FOLLOW) Dow Jones Newswires

August 21, 2012 03:44 ET (07:44 GMT)

2012.08.20 21:55:57 Canadian Dollar Grinds Slightly Higher in Quiet Trade

US Foreign Agency Holdings 693.03B
Foreign Treasury Holdings 2.86T
2350 JPN Jul Corporate Service Price Index

Friday, August 24, 2012 Exp Prev
GMT
0830 UK Q2 Business investment provisional results
Business Investment QoQ First
Estimate +3.8%
Business Investment QoQ Second
Estimate +1.9%
Business Investment YoY First
Estimate +14.2%
Business Investment QoQ Second
Estimate +14.8%
0830 UK Jun UK monthly service sector figures
0830 UK Q2 GDP 2nd estimate
GDP Revised Quarterly -0.5% -0.7%
GDP Revised Yearly -0.6% -0.8%
1230 US Jul Advance Report on Durable Goods
Total Orders +3% +1.6%
Orders, Ex-Defense -0.7%
Orders, Ex-Transportation -1.1%
1800 CAN Bank of Canada Weekly Financial Statistics
N/A JPN Aug Monthly Economic Report
N/A JPN Bank of Japan - Bank of Japan Governor Masaaki Shirakawa
speech in Osaka
N/A GER German Chancellor - German Chancellor Angela Merkel meets
Greek Prime Minister Antonis Samaras

Saturday, August 25, 2012 Exp Prev
GMT
N/A FRA Elysee Palace - French President Francois Hollande meets
Greek Prime Minister Antonis Samaras

Sunday, August 26, 2012 Exp Prev
GMT
2301 UK Aug Hometrack Monthly National House Prices Survey

Monday, August 27, 2012 Exp Prev
GMT
0600 JPN Jun Revised Machine Tool Orders
On Year -15.5%
0800 GER Aug Ifo Business Climate Index
Business Expectations Index 95.6
Business Sentiment Index 103.3
Current Conditions Index 111.6
Business Climate Index
Direction +2
1000 FRA Q2 OECD Quarterly National Accounts: GDP growth
1230 US Jul Chicago Fed Midwest Manufacturing Index
Manufacturing Index (MoM) +1.1%
Manufacturing Index (YoY) +11%
Auto Output Index (MoM) +0.7%
Auto Output Index (YoY) +21.9%
Machinery Output Index (MoM) +2.9%
Machinery Output Index (YoY) +12.2%
Resource Output Index (MoM) +0.5%
Resource Output Index (YoY) +2.1%
Steel Output Index (MoM) +0.4%
Steel Output Index (YoY) +11%
1430 US Aug Texas Manufacturing Outlook Survey
Business Activity Index -13.2
Manufacturing Production Index 12
1600 FRA Jul Claimant count and job advertisements collected by Pole
emploi
Unemployed 2.95M
Unemployed Monthly % Chg +0.8%
2301 UK CBI Service Sector Survey
N/A UK UK Bank Holiday (not Scotland) - Summer Bank Holiday
N/A US Republican National Convention Committee on Arrangements -
Republican National Convention

Tuesday, August 28, 2012 Exp Prev
GMT
0600 GER Jul Foreign trade price indices
0610 GER Sep GfK consumer climate survey
Consumer Confidence 5.9
0645 FRA Jul Industrial investment survey
0645 FRA Q2 New home sales
0645 FRA Jul Housing starts
0800 EU Jul Monetary developments in the euro area (M3)
M3 +3.2%
M3 (3-Month Average) +3%
Private Sector Loans -0.2%
1145 US ICSC-Goldman Sachs Chain Store Sales Index
1230 CAN Q2 Quarterly financial statistics for enterprises
1255 US Johnson Redbook Retail Sales Index
1300 US Jun S&P / Case-Shiller Home Price Index
SP Composite-10 MoM +2.2%
SP Composite-10 YoY -1%
SP Composite-20 MoM +2.2%
SP Composite-20 -0.7%
National QoQ -2%
National YoY -1.9%
1400 US Aug Richmond Fed Business Activity Survey
Manufacturing Index -17
Retail Revenues Index -18
Services Revenue Index -11
Shipments Index -23
1400 US Aug Consumer Confidence Index
Consumer Confidence Index 65.9
Expectation Index 79.1
Present Situation Index 46.2
2030 US API Weekly Statistical Bulletin
N/A US Republican National Convention Committee on Arrangements -
Republican National Convention day two


(END) Dow Jones Newswires

August 20, 2012 16:05 ET (20:05 GMT)

2012.08.20 21:54:23 USD/JPY intraday: consolidation in place.

USD/JPY intraday: consolidation in place.

Update on supports and resistances.
Pivot: 79.55

Our preference: Short positions below 79.55 with targets @ 79.2 &
79.05 in extension.

Alternative scenario: Above 79.55 look for further upside with 79.7 &
79.85 as targets.

Comment: the pair has broken below its support and should face further
weakness as the RSI is badly directed.

Key levels
79.85
79.7
79.55
79.38 last
79.2
79.05
78.8

Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume

20.08.2012 00:02 Up

2012.08.20 21:25:03 ECB, Germany Quashes Yield-Cap Speculation

FRANKFURT--The European Central Bank, backed by Germany, shot down
speculation that the ECB is preparing to dramatically escalate its
crisis response by setting a cap on government-bond yields in Spain,
Italy and other debt-saddled euro-zone countries.

Germany's central bank, the Bundesbank, also stepped up its opposition
to any bond purchases whatsoever by the ECB, exposing a deep divide
between the ECB and its largest member over the best way to address
high bond yields in crisis-hit countries.

The comments reflect the high stakes as the ECB's response to Europe's
nearly three-year-old debt crisis approaches a decisive phase. The
central bank's president, Mario Draghi, opened the door earlier this
month to large-scale purchases of short-dated government bonds and
said officials would weigh specific proposals in coming weeks.

Measures that could be most effective from a market perspective, such
as yield targets, face legal hurdles and stiff opposition in Germany.
But limited steps may do little to resolve the crisis.

"It is absolutely misleading to report on decisions which have not yet
been taken and also on individual views, which have not yet been
discussed by the ECB's Governing Council," an ECB representative said.

The ECB was responding to a weekend report in German magazine Der
Spiegel that said officials were considering a plan to cap the
borrowing costs of struggling euro-zone governments by buying
unlimited amounts of their bonds to keep interest rates at a
reasonable level.

The central bank rarely responds publicly to specific media reports,
as it did Monday, suggesting it was taking pains to quell further
speculation on the issue.

The euro rose early Monday on the report before retreating after the
ECB's statement, which was echoed by Germany's Finance Ministry, whose
spokesman on Monday called the idea "very problematic." Spanish and
Italian bond yields ended lower.

Spain has been vocal in its insistence that the ECB buy massive
amounts of its bonds to reduce borrowing costs. Spain's finance
minister, Luis de Guindos, reaffirmed over the weekend that Madrid
wants the ECB to commit to open-ended debt purchases before Spain asks
for financial assistance.

The ECB appeared to reject Spain's plea.

"As far as recent statements by government officials are concerned, it
is also wrong to speculate on the shape of future ECB interventions,"
the ECB representative said, without specifically mentioning Spain.
"Monetary policy is independent and undertaken strictly within the ECB
mandate."

Such a dramatic step is what is needed to restore investor confidence
in government-bond markets in southern Europe, some analysts say.

These markets have been pummeled in recent months by concerns that a
mix of economic recession and high debt levels will make it difficult
for Spain and Italy to obtain financing without outside assistance. By
setting a cap, the ECB would commit to buying bonds whenever yields
approached a certain threshold, opening the door to unlimited
purchases.

Such policies have proved effective in Switzerland--where the central
bank has successfully set a ceiling on the value of the Swiss
franc--but they could be problematic in the euro zone.

An unlimited bond-buying commitment may run afoul of ECB rules
prohibiting it from financing government debt. It also raises a host
of practical problems such as how to define an appropriate bond yield
in each of the 17 euro-zone countries. If the ECB sets an explicit
target and fails to defend it, the central bank's credibility could be
severely damaged.

Putting the ECB's bond buys on autopilot may also weaken the resolve
of governments to slash their budget deficits and revamp their
economies.

Mr. Draghi signaled earlier this month that the ECB would consider
intervening only if countries ask the euro-zone bailout fund for aid
and agree to conditions for assistance.

The ECB began buying government bonds of Greece, Ireland and Portugal
in May 2010 and expanded the program to include Spain and Italy last
August. But officials have repeatedly called the program temporary and
limited, weakening its effectiveness. The ECB said on Monday that it
had stayed out of government-bond markets for a 23rd straight week
last week.

One potential compromise would be for the ECB to guide bond investors
toward informal yield targets through its purchases without committing
itself to explicit caps. That would bring yields down without tying
the central bank's hands.

Yet even that approach would likely run into opposition from the
Bundesbank, which said in its monthly bulletin on Monday that it
"remains of the opinion that .. government-bond purchases by the [ECB
and its member banks] should be viewed critically" and entail
"substantial" risks.

The Bundesbank considers bond purchases by the central bank a
dangerous breach into the realm of fiscal policy.

Although the ECB has overruled the Bundesbank before on bond buying,
and would likely do so again if needed, German opposition is seen by
many analysts as limiting the effectiveness of the program.

Write to Brian Blackstone at brian.blackstone@dowjones.com and Tom
Fairless at tom.fairless@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

August 20, 2012 07:25 ET (11:25 GMT)

2012.08.20 15:55:05 ECB, Germany Hit Back at Reported Bond Buying Plan

--ECB castigates "absolutely misleading" reports on its bond buying plan

--ECB will act strictly within its mandate, spokesperson says

--Targeting government bond yields by ECB could be problematic, German
finance ministry says

--Decisions on sharing solvency risks should fall to governments, not ECB,

Bundesbank warns

--Government officials shouldn't speculate on ECB interventions, ECB says

The German government and the European Central Bank both hit back
Monday at a weekend report that the ECB was planning to cap the
borrowing costs of fiscally-strained countries with its unlimited
resources.

A report in German magazine Der Spiegel at the weekend had re-opened a
painful debate over how far the ECB--widely perceived as the only
institution capable of holding Europe's currency union together--can
go in its attempts to keep interest rates low in those countries that
have lost the markets' trust and are struggling with acute recessions.

The report had suggested that the ECB's governing council would
discuss a plan to cap the borrowing costs of struggling euro-zone
governments by buying unlimited amounts of their bonds to keep
interest rates at a reasonable level.

That would test the limits of a grand plan to support euro-zone debt
markets that was sketched out with deliberate vagueness by ECB
President Mario Draghi earlier this month. It would also appear to
cross a red line drawn by Germany's Constitutional Court stopping any
euro-zone attempts to stack up unlimited amounts of liabilities for
future generations of German taxpayers.

"It is absolutely misleading to report on decisions, which have not
yet been taken, and also on individual views, which have not yet been
discussed, by the ECB's Governing Council," an ECB spokesperson wrote
in an email sent to journalists. He stressed that the ECB "will act
strictly within its mandate" of fighting inflation.

Germany's finance ministry also warned that a target interest rate for
government bond yields by the ECB would be problematic, "abstractly
speaking".

The Spanish and Italian government bond markets had rallied earlier on
the Spiegel report, with two-year yields hitting their lowest point in
two weeks, as traders drew a mental dotted line from the report to
conciliatory comments last week by German Chancellor Angela Merkel.
Merkel had ECB President Mario Draghi's recent pronouncements as
"completely in line" with Germany's thinking.

However, the ECB spokesperson's statement made clear that even if an
individual member of its top management would like to cap yields to
ensure what the ECB calls the proper transmission of monetary policy,
any "plan" is, at most, embryonic and faces considerable opposition.

Germany's influential Bundesbank, which has long opposed government
bond purchases by the ECB, stepped up its rhetoric again in its
monthly report, released Monday.

"Decisions on whether to share solvency risks much more widely should
be taken by governments and parliaments' and not by the ECB, the
Bundesbank said. The bank "holds to its opinion that government bond
purchases by the Eurosystem in particular are to be seen critically
and are linked to considerable risks to stability," it said.

By referring to "solvency risks", the Bundesbank raised the
possibility that some euro-zone members might default on their debts
even as the ECB tries to build a firewall around those states.

A Bundesbank spokesman said Monday that the comments were part of its
monthly report and not a direct response to the article in Der
Spiegel.

But the Bundesbank's rigor is not necessarily shared by the other
German on the ECB's governing council, Joerg Asmussen. Asmussen
indicated his support for Draghi's plan in an interview with the
Frankfurter Rundschau newspaper, published Monday. However, he
repeated that the euro zone's own bail-out vehicles, rather than the
ECB, should take the lead in supporting countries' government bond
markets.

At the other end of the crisis' spectrum, Spain's finance minister
Luis de Guindos reaffirmed at the weekend his government would like to
see the ECB commit to massive, open-ended sovereign-debt purchases
before it relinquishes its budgetary sovereignty and asks for a
bail-out.

Mr. Draghi signaled earlier this month that the ECB would only
consider intervening if Spain asks the European Financial Stability
Facility, the euro-zone's temporary bailout fund, for aid and enrolls
in a formal program. The Spanish government has said it will decide
whether to make such a request after the ECB provides more details on
the type of support it would offer. This information could come after
the ECB governing council's policy meeting Sept. 6.

But on this point too, the ECB could only emphasise the distance
between its position and Spain's.

"As far as recent statements by government officials are concerned, it
is also wrong to speculate on the shape of future ECB interventions,"
the ECB spokesperson said. "Monetary policy is independent and
undertaken strictly within the ECB mandate."

Write to Tom Fairless and Todd Buell at tom.fairless@dowjones.com

(Jonathan House in Madrid contributed to this article.)


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(END) Dow Jones Newswires

August 20, 2012 07:25 ET (11:25 GMT)