EUR/USD sits at 1.2225, effectively unchanged from a North American close Wednesday up around 1.2230, the pair continuing to see consolidative narrow range trading

Risk aversion to the fore generally, worries of a slowing Chinese economy exacerbated by release of weak Chinese June PMI data (down at 52.1 from 53.9 in May) and warning from China’s Bureau of Statistics that outlook for exports grim.

Asian stocks have traded lower and European stocks look set to open markedly lower.

Euro zone data due today:

06:00 GMT: German retail sales for May expected +0.4% m/m, -0.6% y/y

06:45 GMT: French producer prices in May expected +0.2% m/m, +4.5% y/y

07:45 GMT: Italian manufacturing PMI for June expected 53.8 from previous 54.0

07:50 GMT: French manufacturing PMI for June (final) expected 54.9

07:55 GMT: German maunfacturing PMI for June (final) expected 58.1

08:00 GMT: Euro zone manufacturing PMI for June (final) expected 55.6

Bit disconcerting yesterday to hear that some sovereigns who had bought EUR/USD down in mid to high 1.21’s were in selling up around 1.2300. Doesn’t exactly help matters.