- UK’s Independent Commision on Banking (ICB) publishes final report
- CBI: ICB proposals on capital are out of step with internationally agreed measures underway. UK govt must rigorously examine banks’ ring-fencing, otherwise it risks threatening economic growth
- Eurogroup’s Juncker: Will do everything needed to defend euro, includes increasing EFSF funding
- German CDU’s Meister: Greek euro exit would damage euro zone
- ECB’s Noyer: French banks added 50 bln euros in capital in 2 years
- ECB’s Weidman: He sees no reason to follow Stark and resign from ECB (Weidman, like Stark, has been critic of ECB euro zone bond buying)
- ECB buys Italian, Spanish bonds again – Traders
- German govt spokesman: If Greece does not fulfill troika criteria then it is automatic that next tranche cannot be paid (EUR/USD tops out after comment hits wire)
- ECB’s Stark: Irish govt should be more ambitious in cutting its’ public deficit ratio
- Germany and Greece flirt with mutual assured destruction – AEP at The Telegraph
Quite a busy morning. EUD/USD has experienced a rather marked short squeeze, up currently at 1.3600 from an early 1.3500. Been as high as 1.3642 as market closed the gap from Fridays’ North American close.
Some supportive rhetoric from the likes of EU’s Juncker (see above) helped provide early support. European stocks opened sharply lower and quickly tacked on further losses. When it became obvious EUR/USD wasn’t following stocks lower, euro shorts started to bail.
Despite ongoing model selling of the pairing, reports of ECB buying Italian and Spanish bonds helped pairing back over 1.3600 and up to session high 1.3642. Comments from German spokesman (see above) brought the market back to reality and we’ve subsequently drifted back a little.
Cable up marginally at 1.5845 from early 1.5820. Dipped briefly below 1.5800, but buying from Middle Eastern sovereign helped provide support.
Market has 1.5780 (trend low July 12) earmarked as important support. Should be decent interest to buy just ahead of said level, and equally decent sell stops not far below there.
USD/JPY down at 76.90 from early 77.25. Talk of decent interest to buy the pairing around the 76.75 level has provided much-needed support.
USD/CHF down at .8855 from early .8915. EUR/CHF steady around 1.2045.