- Greek moderate left party’s Kouvelis: There will be government, may not be within the day. There are still some outstanding issues between political leaders (nothing’s ever straight forward in Greece)
- German June ZEW economic sentiment -16.9 from +10.8 in May, demonstrably weaker than median forecast of 4.0
- ZEW: Worsening in Spanish banking sector, insecurity over Greek election likely to have contributed to sharp decline
- Second Spain banking audit delayed
- German constitutional court says government did not inform parliament sufficiently about ESM configuration
- French June manufacturing industry morale falls to 92 from unrevised 93 in May, in line with Reuter’s median forecast
- UK May CPI -0.1% m/m, +2.8% y/y. Y/Y down from 3.0% in April and below median forecast of 3.0%. Lowest read since December 2009
- Global economy: reasons to be fearful - Nouriel Roubini in The Guardian
- Greek government will be forced to seek third bail-out – The Telegraph
- Greek agony drags on as Asphyxiation Bloc wins – AEP at The Telegraph
EUR/USD hardly changed at 1.2615 from the 1.2605 which greeted me first thing. Inbetween though we’ve been as low as 1.2569 and as high as 1.2629. Middle Eastern interest to buy into dips once again very noticeable. Dutch bank, said to be acting on behalf of SNB, once again notable seller into rallies.
Sell stops gathering through 1.2540, buy stops up through 1.2650.
Cable fractionally lower at 1.5675 from early 1.5685. The pairing wasn’t helped any by early rumours of CPI (see above) coming in weaker than expected. By the time of the release we were already down around 1.5630/35. We saw a subsequent slight dip to 1.5615 before profits on shorts were hastily booked. That sort of market today.
Buy orders seen clustered 1.5600/10, sell orders up at 1.5700/10.
USD/JPY fractionally easier at 78.90 from early 79.0 in slow trade.