- Merkel’s parliamentary leader Kauder tells German TV that neither terms nor content of Greek rescue can be renegotiated. Greek exit would be no problem for the euro
- German govt spokesman Seibert: CDU Greek exit comments not government policy
- German FinMin spokesman says clause in Greek rescue deal, saying deeper recession could lead to discussion of terms, has no legally binding status
- UK Q2 GDP (2nd estimate) -0.5%, improvement from previous -0.7% and exactly in line with Reuter’s median forecast
- BOE’s Weale: May prefer rate cut to QE if more stimulus needed. Need to look at rate cut effect on banks first
- PBOC official Wang Yi: China has room to cut RRR – Chinabond magazine
- Fitch is targeted by Italian magistrate – AEP at The Telegraph
- China should prepare for economic uncertainty – People’s Daily
- Australia’s two-track economy: Hitched to the China wagon – The Economist
No change that, it’s really quiet.
EUR/USD down at 1.2532 from the 1.2552 which greeted me first thing. BIS was seen selling circa 1.2350 early on, helping put pressure on the pairing.
Reports had buy orders clustered 1.2520/30 and we’ve only managed to get as low as 1.2527 so far.
Sell stops seen through 1.2520 and more through 1.2500. Sell orders remain clustered up at 1.2590/00 ahead of presumed 1.2600 barrier option interest.
USD/JPY sits at 78.53, to the pip where it was when I arrived.
Cable also effectively unchanged at 1.5850.
AUD/USD down at 1.0400 from early 1.0425 having been as low 1.0378. Hedge fund buying seen around the lows, providing much needed support. Hedge funds also seen selling EUR/AUD.