- Spanish EconMin: Risk premium on Spanish debt should be lower – El Pais (well there’s a shock)
- BOJ’s Kamezaki sees yen risk, says BOJ to act proactively on prices – Bloomberg
- German EconMin: We have sustainable recovery in Germany
- ECB bank lending survey: Banks expect in Q3 current difficulties in accessing wholesale funding to remain, although not to same extent as in Q2
- BOE’s King: Q2 growth is encouraging but must be careful not to read to much into one number. Can’t be certain that recovery will be sustained in UK
- BOE’s Miles: Further asset purchases may be warranted “at some point in the future”
- BOE’s Sentance: I see current policy settings as extreme. Q2 GDP figures confirm evidence that’s been coming from other sources for some time
- S&P report: European bank recovery still vulnerable
In the words of that legend Engelbert Humperdinck “please release me, let me go.” Was that dire, or what?
EUR/USD opened around 1.3000. Rallied very slowly early. Reports had sell orders layered from 1.3020 through to 1.3050 with stops through 1.3060. We got eventually to 1.3041 before stalling. It kinda had a certain eventuality about it.
Talk had Russia notable seller around the highs. China sold cable early around highs, so they might have been in selling EUR/USD as well, but didn’t confirmation of such.
Asian sovereign (not China) buying has infact been seen on dips below 1.3000. Talk of an attempt going to be made in early US trading to bring large 1.2850 option interest into play before expiry later today. All I can say is good luck with that one. We sit presently at 1.3000.
Cable marginally firmer at 1.5600 from early 1.5580. An early rally accelerated when stops tripped through 1.5600 on way to session high 1.5626. China reportedly stepped in and sold around the highs and that was that.
Stood around 1.5600 just before BOE officials went before Treasury Commitee hearing. Comments from Miles and King sent cable down to session low 1.5548, before comments from Sentance helped steady the boat.
USD/JPY up marginally at 87.80 from early 87.65. Pairing tripped stops through 88.00 (where barrier option interest was said to lie), but failed miserably to accelerate the rally. Got only as far as 88.11 before stalling. Kind of summed up the morning.
Cable
