- Obama in letter to G20 leaders: We need to commit to restore sustainable public finances in the medium term
- Japan govt upgrades economic assessment in June
- German May PPI +0.3% m/m, +0.9% y/y vs median forecasts +0.1%, +0.8% respectively
- Shanghai share index down 1.8%, biggest one day drop this month
- Dutch June adj consumer confidence -18 pts vs -16 in May – CBS
- ECB’s Trichet: Too rapid credit growth shouls always be a warning sign for central banks
- UK May PSNCR 11.963 bln, PSNB 16.023 bln, both better than expected, median forecasts 20.25 bln and 18.0 bln respectively
- Mortgage approvals by major lenders in May 51,000 vs 48,000 in April and vs median forecast 50,000
- Head of Spain’s La Caixa bank says Spain’s financial system has liquidity, not solvency, problem
- German FinMin: We will have to check how law can be interpreted to permit stress tests to be made public
- ECB’s Gonzalez-Paramo: Stress tests should be coordinated by individual governments and banks
- ECB’s Trumpell-Gungerell: Euro will survive
No appetite for risk so far today. European stocks opened firmer but have subsequently slipped into negative territory. Oil off around a buck. USD and JPY marginal beneficiaries against this backdrop, but it’s been generally slow going.
EUR/USD down at 1.2370 from early 1.2410 having been as low as 1.2358. Stops seen through 1.2330. On topside sell orders noted at 1.2430/50, stops through 1.2455.
Cable slightly lower on day, down at 1.4815 from early 1.4830. Pairing got off to promising start triggering stops through 1.4860 on way to session high in 1.4880’s.
The pairing had already slipped to around 1.4850 when the release of better than expected public finance data (see above) gave the pairing another marginal lift. But it was fleeting and the pairing has subsequently slipped back.
USD/JPY down slightly at 90.65 from early 90.90 against the backdrop of mild risk aversion. EUR/JPY down at 112.15 from early 112.75.
