- German April PPI +1.0% m/m, +6.4% y/y, stronger than median forecasts +0.6%, +6.0% y/y
- Bundesbank: Any softening of Greek targets would call into doubt sustainability of debt. Some easing of German economic growth can be expected after Q1 surge
- ECB’s Makuch: Troika mission results needed before deciding on further steps for Greece
- Spain’s PM: Govt studying committee decision not to allow weekend protests
- Spain vote threatens to uncover debt – WSJ
- Italy March industry orders s.a +8.1% m/m, unadj +21.2% y/y, demonstrably firmer than median forecasts +0.5%, +15.7% respectively
- Canada April consumer prices +0.3% m/m, +3.3% y/y, weaker than median forecasts +0.5%, +3.4% respectively (CAD weakened in wake of data)
- Dutch May adj consumer confidence -10 pts, unchanged from April
Euro has seen some general weakness this morning, EUR/USD down at 1.4235 from early 1.4310, EUR/JPY down at 116.25 from around 116.80. Concerns surrounding PIIGS are never far from the surface and German/periphery govt bond yield spreads widened out again today.
At the same time likes of oil and gold gave up early gains, which didn’t help euro’s cause as the morning progressed.
USD/JPY effectively unchanged at 81.65. Dip to 81.46 session low saw China stepping in and buying.
Cable little changed at 1.6230. Did manage an early rally which saw stops through 1.6245 and 1.6260 tripped on way to session high 1.6273. As general risk appetite started to ebb away, so cable came lower.
Sell orders noted lined up at 1.6280 through to 1.6310.
EUR/GBP down at .8770 from early .8815. UK clearer with close Scottish associations notable seller early.
