- Report for EU leaders: Issuance of common debt and “joint and several” liabilities could be considered as final stage of fiscal union process
- French FinMin: EU summit must lay foundation of euro 2nd phase
- French Budget Minister: 0.5% economic growth in 2012 difficult to reach
- Spain’s Economy Minister: Negotiation of financial package for banks will take time, very complex
- BOE’s King: Monetary policy still works, UK’s not caught in a liquidity trap
- More King: I’m pessimistic about eurozone
- BOE’s Dale: Central view is that underlying growth to pick up towards end 2012
- ECB’s Bonnici: ECB can’t be lender of last resort to governments. Need adjustments on political side
- Japan’s Lower House approves plan to double sales tax after government deal with opposition
- 57 Japan ruling party lawmakers vote against tax hike plan, threatening party breakup – NHK
- Moody’s: Japan’s decision to raise sales tax positive for sovereign credit rating
- German Gfk July consumer sentiment indicator 5.8, up from 5.7 in June and better than Reuter’s median forecast of 5.6
- UBS consumption indicator for Switzerland 1.05 points in May, down from revised 1.37 in April (prev 1.41)
- French June consumer confidence stable at 90, unchanged from 90 in May and slightly stronger than Reuter’s median forecast of 89
- Italy April retail sales s.a -1.6% m/m, unadj -6.8% y/y. Monthly fall steepest since May 2004. Y/Y fall steepest fall since start of series in January 2001 – ISTAT
- UK May PSNB £15.58 bln, worse than median forecast of 14.25 bln
- Scaring Germany into saving the euro - WSJ
EUR/USD effectively unchanged at 1.2500. Market seems a little loathe to push the envelope ahead of the EU summit starting Thursday. Hope situation changes, getting a little tedious. Middle Eastern buying helped the pairing rally to session high 1.2530 where it ran into hedge fund sales.
Buy orders seen clustered down at 1.2470/80, sell stops below there and more through 1.2440. Sell orders seen clustered 1.2540/50, buy stops through 1.2555.
Cable has had a good day, helped by decent interest to sell EUR/GBP cross. Cable up at 1.5640 from early 1.5575, EUR/GBP down at .7990 from early .8025. “US name” said to have been very notable seller of the cross this morning.
Talk of barrier options now lined up down at .7950 and 7900.
USD/JPY down marginally at 79.35 from early 79.55, slowly chewing through semi-official bids said to be lined up all the way down to 79.00.
