- Moodys sees negative industry outlook for SE Asia banks
- China should buy gold to hedge USD fall - Chinese Researcher
- SNB rumoured to have intervened in EUR/CHF, USD/CHF. Central bank refused to comment. We had confirmed reports BIS in EUR/CHF.
- Italy June business confidence rises to 69.3, up from 68.8 in May, but lower than median forecast of 70.0
- Dutch June business confidence -15 vs -17 in May – CBS
- Euro zone April industry orders -1.0% m/m, -35.5% y/y, weaker than median forecasts of flat, -32.3% respectively. Record y/y drop
- Germany risks “massive credit squeeze” soon - BGA exporters association
- ECB’s Provopoulos: Green shoots not necessarily a sign of a fast return to growth. Degree of uncertainty regarding the course of the global and European economies remains high
- Irish Q-1 unemployment rises to 10.2% vs 8.1% in Q-4 2008, highest since 1997 – RTE
- Iran’s Mousavi: Election protests are people’s constitutional right
Sterling has come under heavy pressure this morning, cable down best part of two full cents while EUR/GBP is up at ..8570 from an opening in Europe down around .8485.
Cable saw losses accelerate when sell stops just below 1.6400 were triggered and we’re presently at a session low 1.6255. Sources say a Middle Eastern entity sold good amounts of cable through a Swiss bank and this did alot of the damage. It’s funny given that Middle Eastern names were aggressive buyers yesterday. What a difference a day makes.
The increasing tensions between the Old Lady and the Government will certainly not be helping sterling sentiment. Recent hopes for an early recovery in the UK economy also seem to be fading fast. General risk sentiment has also taken a knock this morning with European stocks underwater, and this would have compounded things.
That all said, don’t panic (yet) Mr Mannering!!!, we might just be testing downside of well-touted 1.62/1.66 range. We’ll know soon enough.
Swissy has also seen some weakness, USD/CHF up at 1.1000 from an early 1.0945, while EUR/CHF is up at 1.5325 from around 1.5290. Rumours flew this morning that the SNB had entered the market and were again buying both USD/CHF and EUR/CHF. The central bank refused to comment, which is their way.
We had confirmed reports that infact BIS has been in EUR/CHF, but couldn’t get confirmation of interest in USD/CHF, although it looks very likely they were in buying that too.
Commodity currencies, aussie dollar and especailly canadian dollar, have also given ground.
EUR/USD off about 30/35 points, but has been relatively sidelined as action took place elsewhere.