• Spain July jobless falls 20,794 after 55,250 drop in June. Third fall in a row, due to public works programmes. Total unemployment claimants still very hefty 3.54 mln
  • Swiss July CPI -0.7% m/m, -1.2% y/y, weaker than median forecasts of -0.5%, -1.1% respectively. Sharpest rate of decline in 50 years as retailers slashed prices for clothes and shoes in summer sales
  • UK construction PMI index rises to 47.0 in July from 44.5 in June, better than median forecast of 45.0, and highest read in 16 months
  • Euro zone June PPI +0.3% m/m, -6.6% y/y, pretty much in line with median forecasts of +0.2%, -6.6% respectively
  • China may need second fiscal stimulus package in 2010 – Stephen Roach, Morgan Stanley Asia Chairman

Risk appetite is on the wane a little today, and this has resulted in the JPY gaining across the board. USD/JPY is down at 94.70 from an early 95.35, while EUR/JPY is down at 136.35 from around 137.15. S&P futures are down 7 points at writing.

EUR/USD at 1.4395 is effectively unchanged on the day, trading confined to a narrow range either side of 1.4400 this morning. Buy orders noted down at 1.4350/60, sell stops just below 1.4350. On topside, sell orders noted at 1.4440 up through 1.4475.

GBP/USD is marginally lower, off about 20 points, presently at 1.6940. An early rally ran into good selling interest in the 1.7000/10 area and the subsequent sell-off extended to a session low 1.6912 before steadying. Better than expected construction PMI has lent some support. Buy orders noted down at 1.6900/10, sell stops just below 1.6900. On topside, sell orders at 1.7000/10, buy stops just above 1.7010.

USD/JPY is down at 94.70 from an early 95.35. Buy orders at 94.70/oo were taken out and stops below 94.50 triggered bringing about a session low 94.37. There has been a subsequent recovery to 94.70 at writing.

AUD/USD having started off around .8450 in Europe came under heavy pressure early , with an Asian sovereign seen selling in the .8435/40 area. The pairing has struggled to recover and at writing is posting a session low .8385. Talk of Asian sovereign lying in wait as a buyer down at .8380, but that might not be enough to stop the rot.