- ECB Constancio disagres with Buba and says Banking Union can happen before Fiscal Union
- BOC Carney adds to calls for banking union
- Japan machine orders rebound
- Moody’s outlook for Australia’s AAA rating remains stable
- RBA Stevens: We shouldn’t wish too quickly for a lower AUD
- South Korean May unemployment rate 3.2%, down from 3.4% last month
- BOC Carney: Trend in Canadian economy steady; some withdrawal of stimulus might be appropriate
- Regional stocks mixed: Nikkei +0.25%, Shanghai flat, others -0.5% on average
- Gold $1610/oz; Oil $82.70/bbl
Pretty quiet all round but what should have been positive statements from ECB, BOC, RBA and Moody’s have all been ignored and risk aversion has set in with stockmarkets edging lower and the EUR and AUD following, albeit in tight ranges.
EUR/USD opened at 1.2500, and tried to move higher on the back of some EUR/JPY buying in early trade. The comments from the ECB vice-president had the market speculating that the G20 meeting might succeed in setting the guidelines for a new EZ banking union. Comments from BOC Carney reinforced these views. Momentum was lacking however and nobody seems willing to take on any significant risk ahead of what could be a turbulent weekend from Athens to Mexico City. The EUR/USD has slowly edged lower in a disinterested market. Ranges: 1.2472/1.2516; EUR/JPY 99.27/69
AUD/USD followed the EUR lead and had even more reasons to rise, with positive comments from Moody’s and the RBA Chief surely giving bulls some fuel? It was not to be, with the Aussie following the EUR lower in a slow slide as intraday bulls gave up. Ranges: .9932/69
USD/JPY remains tied in by big buy and sell orders at 79.00/10 and 79.75/80 respectively, and we traded 79.48/69 on cross flows.
Cable 1.5539/78.
