Forex Signals

• Japan Ozawa campaign aide: BOJ not doing enough, but BOJ alone cannot end deflation
• IMF Chief Econmoist Blanchard:  Growth will likely remain weak both in Euope and US
• Australian independent MP says decision on new govt coulod be made on Tuesday
• UK August car registrations fell 17.5% y/y – SMMT
• Euro zone sentix investor confidence 7.6 in September, down from 8.5 in August and worse than than median forecast of 9.0
• Belgian/German 10-year bond yield spread widens 9 bps. Widest in week on increased political worries.  Politician who had been trying to broker formation of a government quit Saturday
• Irish Finance Ministry: Still two options considered for Anglo Irish Bank, winddown or splitting bank in two

Sterling weakness certainly the main feature of otherwise lacklustre trade.  Cable down at 1.5355 from early 1.5470, while EUR/GBP is up at .8380 from around .8335.

Rumour has done the rounds, that UK clearer needs to buy large amount of EUR/GBP for the UK Department of Agriculture.  Talk is it could be upwards of 1 yard and could be done at the 12:15 GMT ECB fix.

Also gilt coupon payments due this week and some of the proceeds will be transferred out of sterling.

Finally, talk UK clearer executed large cable order for model fund in thin market.

EUR/USD has slipped lower, down at 1.2873 from early 1.2900.  Initially pairing saw slight rally to 1.2918 session high.  But selling by BIS above 1.2910 helped cap the upside quickly.  There have also been reports of China leaving sell orders starting up at 1.2925.

USD/JPY at 84.20, fractionally easier on day, but with buy orders down at 84.00/05 so far lending much-needed support.