• Talk Rombopolous joining opposition’s Athanasiadis AGAINST the reform package in Greece. If true would bring expected yes votes down to 153 out of 300
  • Merkel: Greek PM using all political clout he has to secure majority for austerity package
  • Ifo German business climate index 114.5, better than median forecast of 113.4
  • Ifo’s Abberger: Seeing enormous economic risks, especially on international front
  • ECB’s Gonzalez Paramo: Crisis continues, will not end soon
  • ECB’s Gonzalez Paramo: No reason to think private sector in Greek debt rollover should constitute default
  • UK FDC: Euro zone debt crisis poses “most material and immediate threat”
  • BOE’s KIng: We can’t hope to prevent financial crises from happening, can foster resilience
  • Spanish govt has asked banks to rollover Greek debt for next 5 years – Source
  • EU leaders appoint Draghi ECB President until 2019
  • French consumer confidence 83.0 in June, unchanged from downwardly revised 83.0 in May (previous 84.0)
  • Dutch June business confidence +2.0 pts, down from +3.1 in May

Very volatile, choppy market. EUR/USD started around 1.4260 and sits presently at 1.4220. Inbetween we traded a 1.4190-1.4307 range. Dipped early. Talk of soft Ifo report weighed. BIS bought around 1.4200 lending support. We were already recovering when better than expected Ifo extended recovery.

Spiked above 1.4300 fleetingly (why?, haven’t really got a clue) Suffice it to say we were only there for a very short while. We were already falling lower when a combination of factors accelerated the decline to session low 1.4190. Talk of Rompolous (who ever he is) joining no vote against Greek austerity package, comment from ECB’s Gonzalez-Paramo and talk of trading in Italian bank shares having been suspended all took their toll.

It’s not been a market for the faint-hearted. Talk now of sell stops through 1.4190, buy stops through 1.4310.

USD/JPY down at 80.15 from early 80.50. At start of day had reports of decent buy orders ($2/3 bln) lined up from 80.20 to 80.00. They are said to include Kampo interest and are just about holding the downside.

USD/CHF effectively unchanged at .8370. We dipped as low as .8336 before notable buying by a sovereign name triggered recovery. The central bank in question was said to have been covering large short positions.

Cable also pretty much unchanged at 1.6020. We did fall heavily though to a session low 1.5949 before sharp recovery. Early talk had UK clearer with decent buy interest lined up from 1.5960 down to 1.5930, apparently for dividend payment purposes. I thought the interest was scheduled to be done Monday and never did get direct confirmation of the interest actually being executed. But interesting to see the bounce from the area mentioned.