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Germany’s CSU party rejects EU bank resolution plans
AUDUSD orders
ECB’s Coeure says low interest rates risk delay of reforms
GBPUSD orders
The Ben bomb
EURJPY orders
EURUSD orders
ECB monthly bulletin: Key interest rates can be reduced further if warranted by price stability outlook
ECB’s Weidmann says ECB can’t resolve crisis
BOJ’s Kuroda: Economy is clearly starting to recover
Shanghai Comp Index closed up 3.23% at 2072.99
European equities open firmer
Europe backing the greenback
French CPI final june: m/m +0.2% as expected
Gold shines again
Moodys says Swiss banking system outlook remains stable
Eurostoxx futures up 1.6%
Nikkei closes up 0.39% at 14,472.58
German wholesale price index june: m/m -0.4% vs -0.4% prev
Nikkei posts session highs

Germany’s CSU party rejects EU bank resolution plans

Posted: 11 Jul 2013 01:50 AM PDT

The Christian social union party operates in Bavaria and is tied with Merkel’s CDU

AUDUSD orders

Posted: 11 Jul 2013 01:37 AM PDT

Currently 0.9236

Sellers

0.9265,0.9280

0.9300,0.9310,0.9320,0.9340,0.9350,0.9380

0.9400

Buyers

0.9225,0.9200

0.9180,0.9160,0.9150,0.9135,0.9120, 0.9100

ECB’s Coeure says low interest rates risk delay of reforms

Posted: 11 Jul 2013 01:32 AM PDT

Liquidity will remain ample
Expect rates to remain low for extended period of time
Monetary policy only one factor for financing economy
ECB took important step to introduce guidance
Will undertake rigorous balance sheet assessment
Welcomes EIB, commission work on SME lending
SSM should be established later in 2013

GBPUSD orders

Posted: 11 Jul 2013 01:32 AM PDT

Currently 1.5092

Sellers

1.5100,1.5120,1.5130,1.5150,1.5160, 1.5190

1.5200, 1.5220,1.5250,1.5280

Buyers

1.5070, 1.5060,1,5050,1.5035,1.5000,

1.4990,1.4970,1.4960,1.4950,

The Ben bomb

Posted: 11 Jul 2013 01:31 AM PDT

I thought that the taper crowd and dollar bulls would come unstuck last night but wasn’t expecting those moves.

Eamonn nailed the summary Bernanke – what was so dovish about his Q&A?

I sat through the Q&A and afterwards thought that would be it for the night. I then got pasted for 200 pips selling 1.50 and 1.30

I did manage to grab USD/JPY at 98.25 and added to my EUR/GBP shorts at 0.8675.

I think the immediate retreat from 1.32 and near 1.5200 showed that the market was using the lack of liquidity to have some fun and I wouldn’t be surprised to see us back down near pre-Ben levels come the end of the day.

The market is a long way from burying the taper bone it’s got in it’s teeth and Bens comments will probably only be a short term set back to that. Any good US data will have the taper bugs jumping in again.

EURJPY orders

Posted: 11 Jul 2013 01:25 AM PDT

Currently 129.57

Sellers 129.90,130.20,130.50,130.80,131.00

Buyers 129.10,129.00,128.60,128.50,128.25,128.00

EURUSD orders

Posted: 11 Jul 2013 01:20 AM PDT

Currently 1.3052

Sellers

1.3065,1.3080,

1.3100,1.3130,1.3140,1.3150,

1.3200,1.3210,1.3250

Buyers

1.3020,1.3000,

1.2985, 1.2965,1.2950,1.2925, 1.2950

ECB monthly bulletin: Key interest rates can be reduced further if warranted by price stability outlook

Posted: 11 Jul 2013 01:03 AM PDT

ECB forward guidance has been provided before exhausting scope for further interest rate cuts
forward guidance is consistent with, but not directly linked to, the decision to extend the horizon for fixed rate tenders with full allotment until july 2014
extended period of time over which interest rates are expected at present or lower levels is a flexible horizon which does not specify a end-date

EURUSD 1.3038 after a little spiker higher on Weidmann’s comments that foward guidance does not exclude a rate hike if price pressures warrant

ECB’s Weidmann says ECB can’t resolve crisis

Posted: 11 Jul 2013 01:01 AM PDT

Economy, inflation, lending justify low rates
ECB guidance is no shift in strategy
Low rates carry risks for financial stability
ECB aimed at providing orientation in uncertain times
Will lift rates in time if inflation rises
ECB commitment tied to economic developments

Jens Weidmann speaking in Munich via BBG

BOJ’s Kuroda: Economy is clearly starting to recover

Posted: 11 Jul 2013 12:39 AM PDT

Press conference being released now

will continue efforts to keep bond market stable
long term rates very stable
recovery in Japan is leading to more positive sentiment increasing spending
prices moving in line with April forecasts
need to monitor development in China inc shadow banking sector
Chinese economy can continue to grow due to strong demand
expects G20 to debate global stability and financial regulation
most BOJ members stuck to their view that CPI will near 2% in latter half of 3 year projections ending march 2016
slight downgrade in CPI forecast due partly to downtrend in energy and commodty prices
US economy is recovering
financial markets are nervous about Fed tapering but the understanding of Fed policy is spreading ( oh really ??!!)
it is possible for Japanese rates to rise due to worries about fiscal discipline but govt policies show Japan is taking it seriously

Nothing in there we didn’t know

USDJPY 99.10 from 99.23

Shanghai Comp Index closed up 3.23% at 2072.99

Posted: 11 Jul 2013 12:23 AM PDT

This one definitely joined in the party if not led it

At one point we were over 5.25% up at 2351.22 but the rally faded into the close

Still a strong performance though

European equities open firmer

Posted: 11 Jul 2013 12:08 AM PDT

Unsurprisingly

FTSE +0.7%
DAX +1.1%
CAC 40 +1.2%
IBEX +1.1%
FTMIB +1.4%

Europe backing the greenback

Posted: 11 Jul 2013 12:06 AM PDT

A very USD-positive start to the day with USDJPY back up to test 99.00 , EURUSD tumbling to 1.3053 and cable down to 1.5092

No doubt a few USD-shorts will have been using the overnight moves to say a big thank to Mr B for a get-out-of-jail card

Now we have to see whether this early move has any further momentum.

The jury is stil very much out and so am I until the picture becomes a little clearer

French CPI final june: m/m +0.2% as expected

Posted: 10 Jul 2013 11:46 PM PDT

+0.1% prev
y/y 1.00% vs +0.9% exp/prev

Gold shines again

Posted: 10 Jul 2013 11:24 PM PDT

A strong performance from the shiny stuff post-Bernanke, taking out resistance at USD 1295

Stalling at the moment though ahead of the 1300-1305 level that, if breached should see a further move to 1325 and 1340

This will be a good test to see if all the recent bears really do think we’re heading lower.

Silver and copper both much higher too in a general commodities rally

Moodys says Swiss banking system outlook remains stable

Posted: 10 Jul 2013 11:14 PM PDT

Citing low levels of problem loans, strong capital ratios, limited reliance on wholesale funding, and substantial loss-absorption capacity through earnings and loan-loss reserves.