- Rumour: Spanish govt to hold unscheduled press conference in which Spain will ask for official support from the EFSF
- EU spokesman: “There has been no request by any member state, as I’ve said before as well, to resort to the instruments
- Rumour: ECB to hold press conference on ESM/EFSF interventions
- ECB’s Liikanen: ECB supports Draghi’s comments
- Germany’s FDP backs ECB’s conditioned bond buying plan – Press
- ECB bond purchases would fuel inflation FDP lawmaker tells Welt (can anyone agree on anything?)
- Italy govt wins final senate confidence vote on growth measures
- Euro zone final services PMI 47.9, up from 47.1 in June and above flash read of 47.6
- UK July services PMI down to 51.0 from 51.3 in June, below Reuter’s median forecast of 51.5
- Euro zone June retail sales +0.1% m/m -1.2% y/y, very marginally stronger than Reuter’s median forecasts of flat, -1.4% respectively. May data revised up to +0.8% m/m, -0.8% y/y from previous +0.6% m/m, -1.7% y/y
Single currency has rebounded nicely across the board as euro zone periphery govt bond yields have come swiftly lower. A couple of rumours have helped oil the skids in yields (see above)
EUR/USD up at 1.2285 from early 1.2175, having been as high as 1.2292 so far. Buy stops were tripped through 1.2225 accelerating the rally.
EUR/JPY up at 96.13 from early 95.17, EUR/GBP up at .7880 from early .7844.
USD/JPY up about 8 pips at 78.26.
Cable up at 1.5588 from early 1.5514 and AUD/USD up at 1.0522 from early 1.0472, the lower periphery bond yields helping lift general risk appetite.
Oil and gold are at little firmer, US treasury yields firmer too. The benchmark 10 year treasury yields 1.5135% presently, from early 1.4779%.
