- Germany and France agree on 150 bln aid package - Banking News (who knows whether there’s any validitity behind story)
- German Chancellor Merkel: Europe and euro closely linked, Germany has profited enormously from Euro
- Germany’s Chancellor Merkel : Greek PM ready to fight
- ECB’s Nowotny: watching with some concern if Greek government has political strength to implement programme
- ECB’s Bini Smaghi: Distressed country must rigorously follow EU/IMF programme for its bonds to remain acceptable as ECB collateral
- Eurogroup’s Juncker warns new Greek aid could be delayed – Dow Jones
- Greek PM appoints Evangelos Venizelos as new finance minister
- Greek 10 year govt bond yield rises to record high 18.9%
- China’s Hu: World economic recovery remains slow and fragile, outlook uncertain
- Euro zone April trade balance -4.1 nln euros- Eurostat
- Italy April world trade deficit -3.761 bln, EU trade deficit- 686 mln.
- EU Commission President Barroso: Calls on all Greek forces to support reforms
With risk aversion very much in evidence from Asia, EUR/USD continued to fall into the European open after EU Juncker’s overnight comments with an early low of 1.4127, before settling into a 1.4130-77 range . Comments from the Merkel/Sarkozy meeting and talk of an E150 bln rescue package for Greece led a sharp rally late morning (after EU trade data was largely ignored) with euro jumping to 1.4289 as risk returned across the boards.
USD/JPY was weighed down in early trade by EUR/JPY and STG/JPY sales targeting stops through 113.50 and 129.45 respectively, but both avoided being tripped. USD/JPY down at 80.30 from early 80.60 having been as low as 80.19 after decent-sized stops tripped through 80.35.
Cable mirrored euro-dollar, breaking higher in late morning as the Greek aid story circulated. Up at 1.6165 from early 1.6115 having been as high as 1.6188.
AUD/USD found decent Asian sovereign buy interest around 1.0511 low and climbed with the aid of model account buying. The move acclerated as EUR/USD took flight. Technical Resistance now seen at the 55 day MA at 1.0640. We’re presently at 1.0615 having been as high as 1.0634.
WTI Crude survived a sharp early kick down from $94.60 to $92.00 earlier before bouncing with equities and the euro back to $94.10. Gold chose to rest up again, trading a $1522.50-1529 range.
