- Goldman: Fed to add liquidity tomorrow
- US housing starts fall 4.8% in May after revised 5.4 rise in April
- Eurogroup’s Juncker: Greek bailout extension could be discussed
- Monti: Euro heads o make crisis decisions in next 10 days
- Hollande: Interest rates in Spain and Italy “unacceptable”; Euro zone will not rely on outside help
- Greek coalition taking shape; talks resume Wednesday
- European Parliament passes amendment to scrap use of credit ratings
- BOE to auction GBP 5 bln in Extended Collateral Term Repo tomorrow
- Cyrus being pressed to accept EUR 10 bln aid program: Bloomberg
- Euro races to 1.2730 highs on UK press reports of ESM-EFSF sovereign bond buying program approval by Merkel
- EUR/USD slumps back to 1.2685 on denial of press reports by UK press
- LCH raises margins on Spanish bonds
- Spanish bank audit results to be released July 31
- Canadian PM Harper: G20 has deep consensus on steps needed in Europe
- Moody’s to cut Spanish banks ratings next week
- US 10-yr yield rises to 1.62%; WTI up 0.84 to $84.14
- S&P rises 1% to 1358
Hope springs eternal. Or at least for most of the US session. EUR/USD rose to a high of 1.2730 this afternoon, rallying for roughly six straight hours. QE3, high odds of a Greek coalition coming together and talk of Germany giving the go ahead to using the firepower of the firewalls to buy Spanish and Italian debt rounded out the bullish drivers of the day’s trade. Buying of upside options protection in EUR/USD was noted in size today as was short-covering as we bounced out of the 10-day moving average early in the day.
Tonight we have comments from the BOJ governor to look forward to while we gear up for a new Greek government and a potential easing move from Gentle Ben Bernanke around midday in New York.
