- US PPI falls 0.3% in May; core rises 0.2%
- US housing starts falls 10% in May
- France: Spain not on EU summit agenda
- US industrial production rises 1.2% in May; capacity use up to 74.7%
- IMF: Major risk of global double dip
- Spain to release results of stress tests
- US Congressman: If China won’t act on yuan, we will
- Bank of Canada: Path of monetary policy not preordained
- BP, US agree on $20 bln escrow fund for oil spill damages; BP cuts dividend
- Bank of England’s King: UK economy does not exhibit characteristics of prolonged inflation; market reduces odds of a rate hike
- S&P 500 closes unchanged after 1% range
- Oil gains 0.60, reaches $78 intraday
A choppy session for the majors today. EUR/USD opened weak in New York but found buyers above 1.2250 where stops were located. Rallies reached 1.2338, below 1.2355 session highs. We end near the middle of the range with EUR/GBP buying limiting losses.
Cable was choppy reaching 1.4855 intraday before sliding in the afternoon. The combination of the dividend suspension by BP along with dovish comments on inflation from Governor King knocked cable through stop-loss sell orders at 1.4750. 1.4733 was the low.
EUR/GBP shot up to 0.8357 as King downplayed inflation risks in his Mansion House speech.
AUD slightly extended its range today, reaching 0.8670, but it failed to sustain those gains for long. It dipped back to close around 0.8630.
JPY crosses remain hopelessly range-bound. 91.09/91.65 was the USD/JPY range, EUR/JPY traded 111.74/112.81.