- ECB’s Wellink tells Dutch daily Financielle Dagblad that Euro zone emergency fund should be doubled to E1.4trillion if private investors are pressured to contribute to additional aid for Greece
- Euro zone banking sources say Germany pushing to delay second rescue package for Greece until September
- Greek vote of confidence in new govt to be completed by Tuesday night –Parliamentary aide
- Euro zone sources say expect IMF to pay next Greek tranche on basis of EU commitment to support Greece further out
- IMF’s Zhu: “Very concerned” by Greece, situation has changed very dramatically in last 24 hours
- EU Commission: Rehn confident of disbursement of next tranche for Greece in early July
- Greek Q1 unemployment 15.9%, Up very sharply from 14.2% in Q4.
- Euro zone Q1 employment unchanged q/q up 0.1% y/y. Euro Zone may inflation 2.7% y/y flat m/m as expected
- SNB keeps rates on hold, as expected
- SNB’s Hildebrand: Inflation forecast shows there’s no urgent need for adjusting monetary policy
- French President Sarkozy calls for responsibility and sense of compromise to find a solution on Greece
- UK May retail sales -1.4% m/m
- Moody’s: UK treasury support for ring-fencing proposals is credit negative for banks
- Spanish 10 year government bond yield hits 11 year high at 5.65%
- Swiss National Bank holds target range for 3 month swiss franc libor unchanged at 0.00-0.75%
- Swiss industrial orders +4.4% y/y in Q1
- SNB’s Danthine seems to rule out forex intervention
EUR/USD had some respite in Asia, but was drilled lower as early europeans came in, falling through the 100 day MA at 1.4156 to 1.4090 on the back of ECB’s Wellink comments . A weak rally to 1.4159 was halted by more comments from officials across Europe increasing the negative bias. Sales from Asian and Middle east names pushed euro to a low of 1.4073 before a european sovereign bought the dip lifting the pair back around 1.4100
Cable suffered a similar fate from early highs of 1.6183 to a low of 1.6100 on horrible retail sales data, boosting EUR/GBP from earlier lows of 0.8725 to 0.8781
USD/JPY failed to capitalize on the dollar strength elsewhere as euro-yen sales weighed heavily, with the dollar falling from 80.88 to 80.48 before finding some bids. EUR/JPY collapsed from 114.34 through the 200 day moving average around 113.78/80 to a low of 113.50
AUD/USD was caught up in the euro fall slipping back to 1.0503 but found some Asian sovereign bids around 1.0510 which cushioned the fall. Stops are set on a break of 1.0500
EUR/CHF fell through stops at 1.1970 to a new life time low of 1.1957 before talk of SNB buying (rumour totally unconfirmed) lifted the cross back through 1.2010. Talk of large bids now resting in the 1.1950 area.
WTI Crude and Gold stood back and watched the carnage trading $94.40-95.73 and $1524-1529 ending the morning mid range