- Merkel: We will not have shared total liability for debt as long as I live
- Merkel proposed ESM bailout fund lending directly to national bank bailout funds like Frob
- Egan Jones cuts Germany ‘s sovereign rating to A+ from AA-
- US stock rally helping to keep a slightly firmer tone for the euro again despite worries over Europe
- US consumer confidence fell to 62.0 in June from 64.4 in June
- Case Shilling home price index rises 0.7%, third straight monthly rise
- S&P up 0.5%
- US 10 year yield up3.6bp to 1.638%
- WTI $79.37 up .17
- Gold down $15.60 to 1,572.80
EUR/USD holding up again after a choppy market thanks to Ms. Merkel . A short-lived sell off to 1.2440 saw it rally back to just around yesterdays closing level of 1.2500 . Should see some sellers 1.2510/20 level ahead of small stops in the 1.2530/35 range. On the downside assume buyers again at the 1.2440 with stops below so next target area around the 1.2365/70 level. Sellers return between 1.2570 and 1.2590.
USD/JPY had quiet session here trading narrow 50 pip range with bias to the downside . A test of stops at the 79.10 level but still looks range bound for now
AUD/USD followed euro most of the day with support around parity sellers at 1.0080.
