• German Gfk July consumer sentiment indicator up at 2.9 vs revised 2.6 in June, better than median forecast of 2.5
  • Swiss May trade surplus 2.013 bln francs vs 2.551 bln in April, exports down -20.7% to 14.3 bln francs
  • French May consumer spending falls -0.2% m/m, weaker than median forecast of +0.2%
  • French June business morale rose to 75 from revised 73 in May, better than median forecast of 74
  • French June provisional manufacturing PMI 45.5 from 43.3 in May, better than median forecast of 44.6. Services PMI 47.5 from 48.3 in May, worse than median forecast of 49.0. Composite rose to 47.7 from 46.6 in May
  • Greek banking system’s fundamentals remain healthy, satisfactory cushion to cover risks – Central Bank
  • Moody’s: US triple A rating safe unless government unable to bring debt back to downward trajectory. Another potential rating risk is if dollar is challenged as the main reserve currency
  • German June provisional services PMI 44.3, down from 45.2 in May, worse than median forecast of 46.0. Manufacturing PMI 40.5, up from 39.6 in May, but below median forecast of 41.0
  • Euro zone June provisional services PMI 44.5, slightly down from 44.8 in May, and below median forecast of 45.8. Manufacturing PMI 42.4, up from 40.7 in May, and pretty much in line with the median forecast of 42.3
  • BOE’s Dale: Early days to judge success of QE, initial indications encouraging
  • UK mortgage approvals 31,132 in May, up from 29,018 in April, better than median forecast of 29,000
  • ECB’s Noyer: Today there is no need to start withdrawing liquidity. He is quite favourable to publishing European bank stress tests
  • World Bank economist Andrew Burns says worst of economic crisis over

Funny old morning. Euro has seen some decent improvement, EUR/USD presently at 1.3960 from an early 1.3860, EUR/JPY at 133.26 from around 132.00, EUR/GBP at .8570 from an early .8490. Only major euro didn’t strengthen against was swissy.

EUR/USD came under pressure early but sell-off petered out at 1.3829. Didn’t hear any talk of sovereign buying down there, but wouldn’t be surprised if they weren’t in. Bascially we’re stuck in 1.38/1.40 range. Can’t imagine the euro zone data was much of a lift, pretty mixed

. Some good news on the European banking front though. Greek central bank official said stress tests have shown that Greek banks can weather extreme external shocks.

Elsewhere ECB’s Noyer said he’d be quite favourable to publisihing European bank stress tests, so he’s quite confidence there’s nothing to fear.

Moody’s comments (see above) will have been noted and wouldn’t have helped greenback’s cause any.

That didn’t help cable any, which is down slightly. Here we seem to be stuck in 1.6200-1.66 range. Article in The Telegraph won’t have helped. Also there seems to be a growing realisation that the UK economy isn’t going to spring back into life.

Interesting interview with World bank economist which will have helped dilute somewhat recent downgrades (see above).