- German Constitutional Court says to announce ruling on ESM/fiscal pact on September 12
- Europe’s bank shifts view on bond losses – WSJ
- Shanghai share index closes down -1.7%, lowest close since March 2009
- The worst major market in the World
- Moody’s: Australia state ratings under pressure
- Berlusconi: “We do not want a more German Europe” - Bild interview
- Euro zone June inflation -0.1% m/m, +2.4% y/y, pretty much in line with Reuter’s median forecasts flat, +2.4% respectively
- Euro zone May trade balance 6.9 bln euros, better than Reuter’s median forecast of 6.0 bln
- Bleak outlook as forecast for global growth is cut by IMF – The Independent
- Fed fiddles as America slides back into recession - AEP at The Telegraph
- China’s “heart attack” in June: Beijing overstated Q2 growth
I’ve seldom experienced so much doom and gloom in the media regarding the state of the global economy. Whoa, whoa and thrice whoa.
Against this backdrop, it’s hardly surprising to see risk appetite at a premium. Yen and US dollar the main beneficiaries as you’d expect.
EUR/USD down at 1.21.85 from early 1.2235 having been as low as 1.2180. Talk of sell stops just below 1.2280 before “decent buy orders” 1.2165/70. Barrier option interest noted 1.2150, more sell stops below there.
USD/JPY down at 78.97 from early 79.10, having been as low as 79.91. EUR/JPY down at 96.22 from early 96.75.
Cable down at 1.5535 from early 1.5568. EUR/GBP down at .7842 from early 7856, barrier option interest at .7850 having been taken out this morning. More barrier option interest noted at .7825 and .7800.
