- Spain deepens austerity under European pressure - Reuters
- Spain 10 year govt bond yield off 10 bps at 6.71%
- German FinMin Schaeuble: Hopes for verdict from Constitutional Court on ESM/fiscal pact before Autumn
- German FinMin Schaeuble: The danger that we have a serious economic downturn is not over yet
- Italian PM Monti: Italy “at war”
- Report: Berlusconi is planning to run again in 2013
- Bank of Italy Gov Visco: Italian spreads are “unjustified”
- German June final CPI -0.1% m/m, +1.7% y/y, unchanged from preliminary readings
- Spain protests loom as Rajoy unveils fresh cuts – BBC
Same headline as yesterday
European stocks, gold, oil all marginally firmer (oil maybe touch more than marginally) Eurozone periphery bond yields marginally lower, US treasury yields marginally firmer (benchmark 10 year at 1.5218% from 1.5066% first thing)
EUR/USD up at 1.2290 from early 1.2255 having been as high as 1.2296. EUR/USD rallied after Rajoy presented his budget/austerity measures. BIS duly stepped in and sold around the session highs, only to then buy back in the 1.2270/75 area. Dutch bank, thought to be selling on behalf of SNB, also notable seller around the highs.
Buy stops now seen through 1.2300 and more through 1.2320.
USD/JPY effectively unchanged around 79.25. Sell stops seen through 79.00 and 78.90. EUR/JPY up a touch at 97.40 from early 97.20.
Cable up at 1.5565 from early 1.5520. EUR/GBP effectively unchanged around .7895. Large pharmaceutical company seen selling the cross early, helping sterling keep pace with the generally better-bid single currency. That pharma interest is now believed to have all been done.
