- EU banks to publish stress test results at 16:00 GMT on July 23 – EU diplomats
- Eurogroup’s Juncker: Does not expect any big catastrophes from stress tests
- Chinese parliament economic group: China faces many economic uncertainties
- Euro zone May trade balance -3.4% bln vs median forecast +1.5 bln. Exports +23% y/y, imports even heftier +30% y/y
- IMF’s Strauss Kahn: Stress tests will show all major European banks sufficiently solid
- ECB’s Honohan: European bank stress tests will go some way to removing concerns about some risks
- UK Q1 construction output -1.1% q/q, -1.9% y/y vs -1.6% q/q, -1.2% in final Q1 GDP release. ONS says new reading could add slight 0.03% to Q1 GDP.
It’s been a good morning for the euro, EUR/USD up at 1.2975 from early 1.2920, EUR/JPY up at 113.10 from around 112.40, EUR/GBP up at .8437 from around .8377, and EUR/CHF up at 1.3535 from around 1.3475.
Bullish rhetoric re European bank stress tests (see above) helped euro’s cause. Guess we’ll see soon enough, EU diplomats revealing late morning that stress test results to be published July 23.
Surge in euro zone imports revealed in latest trade data also suggested pick up in domestic demand, which also helped euro’s cause.
Much talk of sell orders lined up at 1.2990 through 1.3020 helped cap rally at 1.2986 so far. Middle Eastern selling notable around highs.
USD/JPY marginally firmer, up at 87.15 from early 87.00, with Kampo said to have been on the bid just below 87.00. Session low 86.98.
Cable down at 1.5375 from early 1.5420, underminned by rally in EUR/GBP. Sell orders seen layered from 1.5450 up to 1.5500.
