- ECB seeks advice private bank on euro default – Handelsblatt
- OECD’s Gurria: Private creditors must take part in Greece plan. Time is critical!!
- BUBA’s Dombret: Low interest rate regime can only be applied for limited period to stabilise financial crisis
- Italy President says Italy needs to make commitment to national unity to confront current problems
- German Govt spokeman: Says has full confidence in Italian govt to make decisions for austerity budget
- China’s audit office says no systematic risks from local govt debt
- Russia Central Banks’ Ulyukayev: A possible Greek default would not affect rouble strongly
- Italian/German 10 year yield spread 14 bps wider at 258 bps
- Japan s.a June consumer confidence index 35.3
- Noda says Yen’s recent move isn’t ‘excessive’
- China PBOC Vice Governor: Reiterates confidence in euro zone, euro
- Germany’s Merkel: Germany and Europe will do everything necessary to defend euro
EUR/USD was a sea of red this morning as EU council Pres Van Rompuy called an extroadinary meeting ahead of the planned meeting tonight. Euro collapsed as Europe opened on sales from leveraged accounts, filling bids through 1.4170 and 1.4150 and taking out stops through a barrier at 1.4130 to 1.4109. Latter comments from German Chancellor Merkel sent Euro down through 1.4100 to 1.4086. Angela sounded kinda panicky.
Cable fell in sympathy from around 1.6005 to 1.5943, but was somewhat cushioned by EUR/GBP sales from 0.8891 to 0.8834
Dollar-yen was throttled in a 80.66-83 range, but overally weighed down by euro-yen sales which triggered stops through 114.00 to 113.64.
Aussie remains firm towards 1.0700 with corporate bids and some possible option related attraction to a large 1.0720 expiry today, keeping the tone buoyed in a 1.0680-1.0724 range
Gold took advantage of the euro collapse posting a fresh all time high against the Euro of 1097.35.
Oil prices edged lower with WTI and Brent August contracts shedding just over a dollar each to $94.80 and $116.52 as the S&P futures fell back 5 points to 1331
