• German FinMin: Certain Germany did not violate constitution or EU treaties with bailouts
  • Swedish central bank raises key repo rate to 2.0% from 1.75%
  • China’s Wen: Consumer prices will be controlled (lots of speculation China will be tightening further this coming weekend)
  • Euro zone services PMI for June (final) revised down to 53.7 from flash 54.2. An 8 month low
  • UK services PMI for June 53.9, fractionally firmer than 53.8 in May and slightly above median forecast of 53.5
  • Euro zone May retail sales -1.1% m/m, -1.9% y/y vs median forecasts -1.0%, -0.9% respectively. April data revised down to +0.7% m/m, +0.8% y/y from previous +0.9%, +1.1% respectively

Things ticked over quite nicely this morning. Cable in particular had an eventful morning. Sits up at 1.6115 from an early 1.6045. Inbetween though it’s been as low as 1.5992 and then as high as 1.6128. Cable, you gotta just luv it!!

Sold off early with a major Swiss name notable seller of the GBP/CHF cross. Talk had “retail” buy orders lined up at 1.5985 down to 1.5970, but we never quite got there. Sovereign stepped in and bought around 1.6000 and we’d recovered marginally to 1.6020/30 area just ahead of the UK services PMI data.

The UK data came in pretty much as expected, but stood in contrast to the weak euro zone PMI. This was the trigger for a sharp bout of profit taking in the EUR/GBP cross which helped lift cable. Various UK clearers were seen notable buyers of cable after the UK data and reported “retail” sell orders in the 1.6090/05 area offered scant resistance.

The cross is down at .8982 from early .9022.

EUR/USD sits 1.4480, effectively unchanged on the day. The pairing came under pressure early reaching session low 1.4457 before recovery. Asian sovereign and option related buying seen around the lows. Talk of stops now below 1.4450 and more below 1.4415.

USD/JPY little changed. Up at 81.12 from early 81.00. A fledgling rally was cut short when a sovereign seller emerged at 81.18. Buy stops now seen through 81.30.

EUR/JPY marginally firmer at 117.48 from early 117.30. Talk of sell stops through 117.00 and more through 116.70. On the topside, barrier option interest noted at 118.00 and buy stops just above there.

USD/CHF down at .8433 from early .8485, with swissy seeing renewed strength. EUR/CHF down at 1.2213 from early 1.2285. Guess some people still worried about something.

As I’ve mentioned earlier, if I win tonights Euro Millions lottery you won’t be seeing me again. So I’d just like to take this opportunity to say, it’s been fun

:)