- Greek PM Samaras to have eye surgery Saturday; Fin Min Rapanos admitted to hospital after fainting
- Canada CPI falls 0.1% in May, core rises 0.2%; lower than expected
- Russian central bank says has begun to buy AUD/USD for reserve account
- ECB announces expanded collateral rules; will now accept car loans as collateral
- Bundesbank critical of new collateral rules
- Spain to apply for bank bailout Monday, amount will not yet be specifid
- Monti, Merkel, Hollande and Rajoy meet in Rome, announce agreement to seek stimulus package worth 1% of euro zone GDP (EUR 130 bln)
- Germany to balance budget by 2016
- Schaeuble: Greece has to meet conditions for second bailout cash
- Reuters: Companies cutting power exports to Greece for non-payment
- Portugal’s deficit widens on higher spending, lower receipts
- France’s Hollande to meet Draghi on Monday
- Futures traders cut USD longs by 43%; EUR short cut by 27%
Erratic price action all day on Friday with the market gapping 40-50 pips at a time. Several attempts to overcome support at 1.2520 (50% of the 1.2288/1.2748 rally) were rebuffed and EUR/USD bounced to the mid-1.2580s before faltering ahead of 1.2590.
USD/JPY consolidated recent gains as the technical picture improved with a break and potential close above the 100 day moving average at 80.43. We trade at that level late in the day.
Equities and commodities recovered a fair bit of Thursday’s losses. The S&P ends up 0.75% on the day while oil recovered the $80.00 level.
Spanish yield plunged, closing at 6.35%, down 28 bp, but the euro was unable to take advantage, a worrisome sign for longs…US yields rose 5 bp as risk aversion eased.
