- PASOK MPs wavering over support for fiscal plan
- France’s Lagarde: Govt has first draft for a deal with French banks on Greek debt rollover
- German bank association: Private creditors will do their bit to help solve Greek debt problems
- German Dep FinMin: Expect Greek parliament will agree additional reform measures this week
- Spain’s EconMin Salgado: Thinks Greece austerity plan will go ahead
- Greece’s 5 year credit default swaps rise to 2,150, up 70 bps on day
- Bank of Korea sold more than $500 mln to support won Monday – Traders
- Germany’s Weber slams rescue efforts – WSJ
- George Soros says it is ‘probably inevitable’ a country will leave euro
The single currency has posted across the board gains this morning.
We’ve seen a nasty EUR/USD short covering rally, in a nervous market, ahead of this weeks Greek austerity vote. Pairing presently up at 1.4220 from early 1.4130, having been as high as 1.4236 after buy stops tripped through 1.4210. I’m finding it difficult to put my finger on the fundamental reason for the rebound. Maybe the European banks’ willingness to rollover Greek debt has helped?
The main surge came when a major Japanese bank stepped in buying EUR/USD in very decent amounts. We moved quickly to the 1.4190/00 area where reports had decent sell orders clustered. And we did see a notable stall at said level before tripping stops just above and moving higher.
Cable up at 1.5990 from early 1.5925 having been as high as 1.6007. The move was aided in no small part by fix-related demand from a UK clearer, who was buying for dividend payment purposes.
USD/JPY steady at 80.70. Talk of decent bids still at 80.00/20, sell stops below there. Sell orders clustered 80.90 thru 81.10, buy stops above there.
