- Eurogroup’s Juncker: Greece will have to implement huge reforms to improve growth potential. Greece will have to rapidly privatise many public entities. Debt level totally unsustainable now. We have to get to soft restructuring of Greek debt
- UK April CPI +1.0% m/m, +4.5% y/y, demonstrably stronger than median forecasts of +0.7%, +4.2% respectively. But y/y rise in line with early market rumours of +4.4/4.5%
- BOE’s King: High CPI mainly driven by energy costs, import prices and VAT rise
- ZEW May German economic sentiment index 3.1 pts vs 7.6 in April, weaker than median forecast of 5.0. On the flip side, current conditions index 91.5, up from 87.1 in April and demonstrably stronger than median forecast of 87.5
Busy old morning. Enough action to keep everyone happy. Well not me, but anyone who wanted to trade.
EUR/USD up at 1.4200 from early 1.4170 having been as high as 1.4224. Both Middle Eastern and Asian sovereigns have been notable buyers into dips, while Eastern European selling was notable around the session highs.
Cable up at 1.6260 from early 1.6200, having been as high as 1.6303. Cable rose early, helped by rumours of stronger than expected CPI data (+4.4/4.5% y/y two nmbers mentioned in dispatches) We stood around 1.6250 on release of the number and rallied hard post release.
Option-related sellling was noted up around 1.6300 and in the end it proved durable. Talk of sell orders also clustered up at 1.6310/30.
USD/JPY enjoyed an active morning. USD/JPY up at 81.60 from early 81.10 having been as high as 81.77 at one stage. EUR/JPY up at 115.95 from an early 114.90, having been as high as 116.22.
Talk of M&A related flows has helped pressure the Japanese yen. Stops were tripped through 81.40 and 81.70 in USD/JPY and through 115.60 and 116.00 in EUR/JPY. More stops now seen through 82.00.
