• China says fiscal revenues up 20.5% y/y in May to 791.8 bln yuan. Down from rises of 34.4% in April and 36.8% in March. Ministry of Finance says it expects further slowdown in coming months
  • ECB’s Stark: Question of whether euro has a future is a crazy one. Our single currency has a future and is the future
  • BUBA: German real GDP +1.9% in 2010, +1.4% in 2011
  • UK John Lews weekly store sales up 20.6%
  • German May wholesale prices +0.3 m/m, +6.2% y/y vs median forecasts +0.2%, +6.1% respectively
  • French May CPI +0.1% m/m, +1.6% y/y vs median forecasts +0.2%, +1.7% respectively
  • UK May PPI nsa input prices -0.6% m/m, +11.2% vs median forecasts of -1.0%, +10.7% respectively, first monthly fall since September. Output prices +0.3% m/m, +5.7% y/y vs median forecasts +0.5%, +5.8% respectively
  • UK April indiustrial production -0.4% m/m, +2.1%, weaker than median forecasts +0.4%, +2.2% respectively, first m/m fall since January. Manufacturing production -0.4 m/m, +3.4%, weaker than median forecasts +0.5%, +3.8% respectively, first m/m fall since January
  • UK inflation expectations for year ahead rise to 3.3% in May from 2.5% in February, highest since August 2008

Sterling’s recent good run has hit a speed bump this morning. Cable is down at 1.4635 from early 1.4710, while EUR/GBP is up at .8285 from early .8225. The release of weaker than expected industrial/manufacturing production data helped persuade sterling bulls to book some pre-weekend profts.

A large French corporate was seen buying decent amounts of EUR/GBP below .8240. Stops noted through .8210.

Noted buy orders at 1.4630/35 have so far lent some tenuous support for cable. Very tenuous.

EUR/USD little changed, marginally firmer at 1.2125 from early 1.2105. Large Spanish corporate and hedge fund seen couple of notable sellers up around 1.2130 helping curtail gains so far. BIS seen buying down at 1.2105/10.

Stops seen through 1.2090 and 1.2060 on downside. On topside some confusion as to where exactly the stops are. Ive heard massive just above 1.2150, some just above 1.2155 and decent-sized above 1.2165. Choices choices.

USD/JPY at 91.65 hardly moved, confined to another session of very narrow range trade.