After focusing on Europe for much of the morning (Spain placed on watch for a downgrade, Italian and Spanish participation in Greek bailout questioned, as funding costs have risen), US data takes its turn in the spot-light.
Economists expect 1.8% growth on an annual rate in Q2 but traders are geared for weaker data. The buck could rise against CHF and JPY on stronger data while we could see a “risk-on” rise in EUR/USD for a few minutes before we turn the focus back to sovereign debt, both in the US and Europe.
