- German govt: Hollande to meet Merkel on Tuesday in Berlin
- Leader of Greece’s moderate democratic left party Kouvelis says his party will not take part in government formed by two pro-bailout parties. Says repeat elections unavoidable if radical Syriza party doesn’t change stance
- Greek official: Chances of coalition government increasing. Govt with conservatives, socialists, moderates eyed. Govt with two year mandate until 2014 being proposed
- German FinMin: Greece’s contagion risk “greatly reduced”
- EU Commissioner Rehn: Euro zone in a mild, short lived recession (can I have a pair of those rose-tinted glasses please)
- EU Commission forecasts 2012 euro zone GDP growth at -0.3%
- India’s March industrial output -3.5% y/y, demonstrably weaker than Reuter’s median forecast of +1.5% y/y
- China’s April industrial output +9.3% y/y, weaker than Reuter’s median forecast of +12.0%
- China’s April retail sales +14.1% y/y, weaker than Reuter’s median forecast of +15.2%
- German April final CPI +0.2% m/m, +2.1% y/y, slightly stronger than initial reads +0.1%, +2.0% respectively
- UK April PPI output prices +0.7% m/m, stronger than median forecast +0.4%
- Italian auction results
- Europe’s nuclear brinkmanship with Greece is a lethal game - AEP at The Telegraph
- Merkel prepares for an austerity backlash as key state goes to the polls - Independent
Will Greece manage to cobble together a government, or not. Early comments suggested they might just manage it, although rhetoric from the moderate democratic left party in late morning seemed to suggest it ain’t gonna happen. Things in a state of flux, the usual for Greece.
EUR/USD up very marginally at 1.2935 from early 1.2920. Release of disappointing Indian/Chinese data (see above) put the pairing under early pressure, but defensive buying ahead of well-touted 1.2900 barrier option proved durable. China said to be defending the barrier interest.
Then as early comments suggested a possible breakthrough in the formation of a Greek government, EUR/USD ticked higher. Russian buying notable in the early part of the rally. Trailing buy stops were tripped through 1.2935 and 1.2950 on way to session high 1.2956 where decent Middle Eastern sovereign selling emerged.
Then comments from Kouvelis hit the wire and we drifted gently lower.
TGIF!!!!! And I really mean it after what has been an exceedingly frustrating week. We can only hope for better price action next week.
