- ECB’s Trichet: ECB carefully monitoring inflation, ready to do whatever necessary to fulfill mandate
- Roubini: Greek debt restructuring is “necessary and unavoidable.” Risks of contagion from Greek debt restructuring are contained
- German April import prices +0.3% m/m, +9.4% y/y, weaker than median forecasts of +0.7%, +9.9% respectively
- Swiss April trade 1516 mln vs revised 997 mln in March
- French May consumer confidence index rises to 84 from 83 in April, as expected
- Italy May business confidence falls to 101.3 from revised 102.6 in April (prev 103.0), weaker than median forecast of 102.5
- EU’s Van Rompuy: Greece will take necessary measures, reforms to meet budget goals
We started with risk on, but things have deteriorated somewhat as Europe’s morning has progressed. Silver took a tumble, dragging gold lower with it. Oil having started higher is presently off just over half a buck on the day.
You know the game; risk on, risk off, risk on, risk off………
EUR/USD sits at 1.4170, up very marginally from early 1.4155, having been as high as 1.4198. Middle Eastern sovereign buying helped fuel the early rally, while decent selling by a large Asian sovereign above 1.4190 helped cap the ascent. Between you and me I think the Asian seller was the Giant Panda, but don’t tell anyone will ya.
Sell stops seen now through 1.4130, buy stops through 1.4200 and 1.4205 (take your pick, what’s 5 pips between friends)
USD/JPY sits at 81.75, slightly lower from early 81.90. Eastern European buying helped lift the pairing from session low 81.64.
Light sell stops seen through 81.60. Buy stops seen through 82.25.
AUD/USD little changed on day at 1.0580. Sell stops now seen through 1.0570.
Cable effectively unchanged on day at 1.6310.
