- Australian govt, miners to announce compromise deal on mining tax Friday - The Australian newspaper
- German May retail sales +0.4% m/m, -2.4% y/y, compared to median forecasts of +0.4%, -1.6% respectively
- Spain sells 3.5 bln euros of 5-year bond vs 2.345 bln euros at May auction. Bid to cover ratio 1.70 vs 2.35 previously. Average yield 3.657 vs 3.532 previously
- ECB allots 111.237 bln euros in 6-day operation
- Swedish central bank hikes key interest rate to 0.5% from 0.25%
- Japan’s vice finmin Ikeda says won’t comment on fx rates, but does opine that weak yen generally good for Japan industry
- BOJ’s Morimoto: To closely watch impact of yen rise. Rise to affect global competitiveness, profits and sentiment
- Euro zone June final manufacturing PMI unrevised at 55.6
- UK June manufacturing PMI 57.5, exactly as expected
Same headline as yesterday. Euro has had a decent morning, but at the end of the day we’re not going very far, very quickly. We’re mired in consolidative range trading if you ask me. I keep remembering that hefty 1.19-1.25 dnt which is said to be in place. Inside that, there’s talk of 1.21-1.24 dnt interest.
EUR/USD up at 1.2325 from early 1.2205 having been as high as 1.2343 after stops tripped through 1.2320. The early move was for a slip below 1.2200 (1.2194 session low) where the market ran slap bang right into China buying interest.
SAMA (Saudi Arabian Monetary Agency) then picked up the baton buying aggressively, and relief Spanish bond auction had gone ok in wake of recent downgrade warning from Moody’s, had us hurtling toward 1.2300 area. BIS even turned up buying in 1.2290’s.
Cable up slightly at 1.4965 from early 1.4940, rally in EUR/GBP helping curtail gains in the spot pairing. EUR/GBP up at .8235 from early .8170.
USD/JPY narrow range bound and at 88.15 effectively unchanged on day. Various comments from Japanese officials (see above) were noted and lent some very very tenuous support.
Aussie like euro has had better morning, AUD/USD up at .8390 from early .8345, the beleaguered aussie garnering some support from news Australian governement, miners have reached compromise on mining tax.