- China investing again in Spanish debt clearly been aiding the Euro
- Greek fiscal consolidation program on track: Juncker ; the Greek Fin Min has been assuring the market during recent weeks, now we hear positive confirmation
- UK economy: retail sales improve but housing market still soft – June BRC Sales up 0.4% from May
- Chinese rating agency strips western nations of AAA status
- Market focus shifting back to US economy,as the sentiment improves generally towards the euro…for the moment
- NAB Business Confidence Report - Do you want the good news or the bad news – confidence down ! conditions up !
- Japanese Government Ministers Arai and Noda defending the government’s position to push for tax increases
- Long-awaited Wall St Reform Bill getting to the line
- European Banks win reprieve in Banking reform legislation over new capital rules
The morning started quietly with a slightly bullish tone for the risk trades encouraged by the Nikkei opening positively 0.5% up; the market has continued lacklustre and drifted with some profit taking – the main mover of note the AUD and crosses coming off a little after the NAB Business Confidence showing negative, and assisted further by a soft Shanghai Composite opening.
EUR/USD has traded in a 30 point range 1.2585/1.2618; EUR/JPY 111.36/112.09
USD/JPY 88.46/88 range flowing with cross movement
CABLE likewise quiet ranged 1.5014/48 ; after an overnight attempt to regain momentum above 0.8400 the EUR/GBP settled back comfortably in the o.8380’s with little range in our session
AUD/USD sold down late morning with the soft Shanghai market to 0.8723 ( earlier high 0.8780) and AUD/JPY low was 77.16 after 78.03
Gold trades at 1199.50, Oil ( Brent -Aug) 74.10
The market has the feel of summer……