• Greek opposition leader Samaras rejects new austerity plan
  • ECB’s Lipstok: It’s a problem that Greece hasn’t done enough to carry through fiscal repair measures, has fallen behind schedule
  • Ifo German business climate index 114.2 in May, unchanged from reweighted 114.2 in April. Stronger than median forecast of 113.7
  • Ifo’s Abberger: German economy continues to perform well despite international risks
  • ECB’s Noyer: Greek debt restructuring would equate to default, Greece would gain nothing
  • Greek 5 year credit default swaps rise to 1,435 bps, up 22 bps on day
  • Japan govt keeps economic assessment unchanged in May monthly report
  • Moody’s reviews rating of selected UK financial institutions for possible downgrade
  • Dagong Global Credit Rating Co cuts UK long-term credit rating to A+ from Aa-, with an outlook of “negative.” Company cites U.K’s worsening capability to repay debt
  • UK April PSNB 7.713 bln, worse than median forecast of 5.35 bln. Worst April reading on record
  • UK Treasury: UK public finances hit by one-off factors, government making headway on cutting deficit
  • China less concerned about slower growth, to keep tighter policy – China central bank advisor
  • Moody’s: Greek default would likely have adverse credit rating implication for other European sovs, Greek banks
  • German Q1 GDP (final) +1.5% q/q, +5.2% y/y, as expected
  • French manufacturing industry morale index falls to 107 in May, down from revised 109 (previous 110) in April, weaker than median forecast of 109
  • Euro zone March industrial new orders -1.8% m/m, +14.1% vs median forecasts -1.3%,+12.8% respectively

The Greek tragedy continues to play itself out. Despite concerns there, the euro hasn’t fared too badly today. Up at 1.4090 from early 1.4055, having been as high as 1.4116 after stops tripped through 1.4110.

Real money has been notable buyer of pairing this morning. The release of stronger than expected Ifo data lent the single currency some decent support, but news that Greek opposition leader (see above) is rejecting the new austerity plan has served to take the shine off things in late morning trade.

Cable up marginally at 1.6130 from early 1.6115. The pairing has recovered nicely from an early swoon after Moody’s announced they were putting a large number of UK financial institutions under review for possible downgrade. There was also news that Dagong Global Credit Rating Co had cut UK’s long-term credit rating to A+.

Even grotty public finance figures (see above) didn’t seem to make much of a dent in the resilient pound. Go figure.

USD/JPY at 81.80, effectively unchanged on the day.

AUD/USD up marginally at 1.0560 from early 1.0540, having been as high as 1.0580 at one stage. Real money, as with EUR/USD, notable buyer of pairing this morning. China was seen selling above 1.0560.