- BOE minutes: Vote 7-2 to keep rates at 0.5% in June
- German Finance Ministry to hold talks today on working group level with banks, insurers over private creditor contributions for Greek aid – German govt source
- Germany happy paying up to keep expansion on track
- China Vice Foreign Min: Disputes over South China seas should be resolved by bilateral discussions
- French June manufacturing industry morale rises to 109
- German parliament’s Conservative Leader Kauder: Tax revenues so good that he sees chance for tax cut deal for lower and middle income familes
- Swiss ZEW investor sentiment -24.3 in June , after -11.5 in May
- Eurozone April industrial orders +0.7% m/m, weaker than median forecast of +1.0%
- Germany’s Merkel: Says EU summit will not make any concrete decision on Greece
- Germany’s Merkel: Govts did not in any way force ECB to buy peripheral bonds,
- FinMin invitation to talks on Greece sent to Deutsche, Commerzbank among other – Sources
- French govt spokesman: France will not accept any default of Greek debt
EUR/USD left feeling top heavy by Asia this morning with offers stacked up above 1.4430, as the euphoria over the Greek confidence vote subsided. Heavy selling of the EUR/CHF cross by a large Swiss pharmaceutical company helped weigh down EUR/USD. BIS was also a notable seller north of 1.4400.
Weak EU industrial orders helped a push to the lows of 1.4353 (ahead of the Ichimoku cloud base at 1.4345) before a bounce back to 1.4380. There is talk of a large 1.4400 expiry for the 1400 GMT cut today, which may well magnetize later.
Cable was whacked lower after the dovish BOE minutes release and has been reeling ever since. Stops were tripped through 1.6130 on the way to session low 1.6110 before steadying.
EUR/CHF was bullied lower by a major Swiss pharmaceutical, from around 1.2150 to session low 1.2082.
USD/JPY played a predictably mundane range again (80.15-34), with EUR/JPY continuing to track the EUR/USD. The cross ranged 115.16-74 in Europe with talk of stops on a break through both 115.00 and 116.00.
AUD/USD dithered between 1.0567-1.0612. Some early buying interest in GBP/AUD from a sovereign name towards the 1.5220 cross lows of the last week weighed on AUD/USD.
Commodities were relatively tame with Gold drifting lower from $1547.50 to $1541.30 and WTI August crude off some 70 cents from earlier highs around $93.96
