- German FinMin: Landesbank consolidation must been continued after stress tests
- Spanish CECA exec Gill: “Tremendously confident” Cajas can raise capital from markets
- ECB’s Orphanides: Expects further normalisation of bond spreads in Europe as confidence returns to growth outlook
- Japan Your Party head: Monetary easing, weak yen, aggressive fiscal policy needed to beat deflation
- S.Korea fx authorities buy dollars to curb won’s strength. Not thought to be overly large. – Dealers
- Moody’s upgrades India’s local currency rating to Ba1. Positive outlook
- ECB’s Bini Smaghi: Clear that Greece can manage its debt crisis. Hypothetical discussions of orderly debt restructuring are not productive
- Conference board leading economic index for euro zone up 0.5% in June to 111.2
- BOE: Conditions in UK corporate debt mkt deteriorated marginally in May and early June. Some firms delayed issuance due to market conditions
- UK govt says will create interim BOE financial policy committee by Autumn
It’s Monday. It’s Summer. And quite frankly it’s boring. So I lied, shoot me!! Jpy has seen some general improvement as risk aversion has picked up, European stocks giving back early gains and slipping into negative territory, oil off close to three quarters of a buck.
EUR/USD sits at 1.2920, marginally easier from early 1.2935. The market rallied early but ran into selling in 1.2950/60 area and then slipped lower as European stocks gave ground. US investment bank seen decent seller around the highs. And not the one doing God’s work!!
We did dip briefly below 1.2900, but it was short-lived. Buying by Middle east, Asian sovereigns and hedge funds has helped limit slippage.
Cable up at 1.5490 from early 1.5460, sterling continuing to bask in the afterglow of Friday’s surprisingly strong growth data. So far though sell orders up at 1.5500/10 have capped the topside. Talk of stops through 1.5525 and more through 1.5560.
USD/JPY down at 87.10 from early 87.60, the yen benefitting from slight pick up in general risk aversion. EUR/JPY down at 112.60 from early 113.35.