• John Lewis weekly department store sales up 6.3%
  • German wholesale sales up +2.0% m/m, -9.1% y/y. Biggest m/m rise since January 2008
  • Italian June PPI +0.5% m/m, -6.3% y/y, stronger than median forecasts of +0.2%, -7.5% respectively
  • Geneva: China says launches formal trade dispute at WTO with EU over screw, bolts
  • Euro zone June unemployment 9.4%, up from revised 9.3% in May (initial 9.5%), much better than median forecast of 9.7%. But still 10-year high
  • Euro zone July CPI estimate -0.6% from -0.1% in June, weaker than median forecast of -0.4% EU commission says expects euro zone inflation to turn positive this year
  • Italy July prelim CPI flat both m/m and y/y vs median forecasts of +0.1% for both. EU harmonised CPI -1.2% m/m, -0.1% y/y, weaker than median forecasts -0.7%, +0.4% respectively
  • Swiss KOF leading indicator -0.99 in July vs revised -1.49 in June (initial -1.65), much stronger than median forecast of -1.45

When all said and done precious little net change on the majors ahead of this afternoons US Q-2 GDP data release. The USD started off on the defensive, but managed to steady after early wobbles.

EUR/USD started out around 1.4125, underpinned by usual talk of month-end portfolio re-balancing demand for likes of EUR, GBP, CAD and AUD; decent general risk appetite; and WSJ article highlighting worries over US government continuing to attract buyers for it’s treasury notes.

EUR/USD went quickly to a session high 1.4145 where it promptly ran into China and Russia both selling. The shock to the system of the double whammy eventually sent the pairing back below 1.4100 for a little while.

Subsequent releases of stronger than expected euro zone unemployment and swiss KOF leading indicator have helped lend the pairing support and we’re back presently at 1.4125 where we began.

Cable lifted early by same reasons as those that lifted EUR/USD. Starting around 1.6545, the pairing quickly hit a session high 1.6574 as stops just above 1.6550 were triggered. We’ve subsequently drifted lower in sluggish trade, presently at 1.6555.

USD/JPY has put on about 20 points in slow trade, presently at 95.60.

US Q-2 data awaited.