- French June business morale rises to 78 from revised June read of 76, better than median forecast of 77
- Spanish June producer prices +0.5% m/m, -5.0% y/y, record y/y fall
- Euro zone s.a May current account deficit -1.2 bln euros vs April’s -6.1 bln
- International bank lending down over $6 trln in year to end-March. Down $1.5 trln in Q-1 2009 – BIS
- UK June retail sales +1.2% m/m, +2.9% y/y, better than median forecasts of +0.3%, +2.1% respectively
- UK June mortage approvals 35,235, better than median forecast of 32,300
- German FinMin: Dollar to remain leading currency after crisis, but yuan and euro to grow in importance
- German FinMin: No credit crunch in Germany, watching situation carefully
- Italy June non-EU trade surplus 155 mln euros – ISTAT
- Italy May retail sales s.a flat m/m, -2.9% unadj y/y -ISTAT
EUR/USD is trading lower on the day, presently down at 1.4210 from a European opening around 1.4235. The pairing continues to run into good supply on moves over 1.4250. Sources note China stepped into the market and sold around the session high 1.4266.
Another Asian sovereign, the Bank of Korea, was also a notable seller. Not sure of exact levels but it seems to have been in the 1.4230/45 area. So far buy orders in the 1.4200/10 area have held the line.
China was also seen buying USD/CHF and USD/CAD this morning. Busy little beaver.
Cable sits at 1.6485, pretty much where it started out. Inbetween it’s been as high as 1.6544. Talk of 1.6500 and 1.6500 option expiries today, and this is helping contain price action. Sources indeed note buy orders down at 1.6480/90, sell orders up at 1.6540/50.
Cable got a lift from stronger than expected retail sales and mortgage approval data, moving from 1.6510 prior to release to session high 1.6544, but couldn’t take out aforementioned sell orders. The subsequent sell off has been held in check by the 1.6480/90 buy interest.
USD/JPY little firmer, up about 20 points on day at 94.35. Jpy being underminned by talk of decent Toshin issuance/take up lined up for tomorrow and the generally raised risk appetite (one in the same I quess)
