EUR/USD down marginally from where I left it, presently at 1.4473.
Combination of factors have combined to take the wind out of the euro bull sails. In no particular order of importance: possible default announcements on Greek debt by rating agencies; German constitutional court hearing challenge to euro zone bail outs; talk of another Chinese monetary tightening as early as this weekend; Moody’s warning that outlook for Chinese banking may be downgraded and less bullish tone to RBA statement. Risk appetite can best be described as tepid or maybe anemic.
Against all the above the euro bulls still have the looming ECB meeting, and very likely rate hike, in their favour.
Euro zone data due today:
07:45 GMT: Italian services PMI for June expected 49.6 from 50.1
07:50 GMT: French services PMI for June (final) expected 56.7
07:55 GMT: German services PMI for June (final) expected 58.3
08:00 GMT: Euro zone services PMI for June (final) expected 54.2; composite 53.6
09:00 GMT: Euro zone retail sales for May expected -1.0% m/m, -0.6% y/y
ECB’s Bini Smaghi to make speech at 08:00 GMT (Yipeeeeee)
