• UK May Jobless Claims +19k, worse than median forecast of +7k. Biggest rise since July 2009
  • Opponents of Greek austerity plan set strike, protests
  • Greek 5 year credit default swaps rise to record high of 1,651 up 61 bps
  • French May EU harmonised CPI +0.1% m/m, +2.2% y/y, in line with median expectations.
  • ECB’s Stark: We’re not against voluntary participation of private banks in further Greece
    aid
  • Austrian Fin Min Fekter: Letting Greece default would pose great danger of contagion
  • Greek PM: Still seeking political consensus on new austerity package
  • Portugal CDS leader says reached deal to form coalition government with Social Democrats
  • French government: Not concerned at Moody’s downgrade warning on French banks

EUR/USD spent the morning on its knees with a fall from 1.4421 largely on Greek debt concerns, tweaking stops through 1.4370 and 1.4340 on way to session low around 1.4300 where reports of Chinese bids surfaced. Technical support of note is next seen at at 1.4285 , with a close below 1.4340 likely to target the May lows of 1.3970.

GBP/USD took a bath on the poor May jobless claims, sliding to 1.6269 from earlier session highs of 1.6378 and continues to be weighed down by a soggy euro as risk appetite wanes. Bids seen towards 1.6250.

EUR/GBP was whacked from the European open from 0.8809 to lows of 0.8774, before the weak UK job data sent cable into a tailspin and the cross bounced to 0.8807.

AUD/USD found plenty of sellers above $1.0700, notably large German names and an overlay fund, but also saw sales from a sovereign name in the 1.0690’s in early Europe. Low on the session was 1.0659.

USD/JPY saw usual sluggish trade and narrow range, with a host of expiries today to tie the pair down for the day around 80.60. Europe ranged 80.44-80.76. Offers seen layered from 80.80 through 81.05, buy orders at 80.55/60.

EUR/JPY tracked the EUR/USD down from 116.06 to 115.36. AUD/JPY ranged 85.96-86.36 buoyed by a resilient aussie.

Commodities were dragged a bit lower by the euro, with Gold shedding about $9 from earlier highs of $1525.50 to a low of $1516. WTI July Crude off slightly from $98.94 to a low of $98.17 before heading back to the highs.