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ECB’s Coeure warns of a “Japanese-style lost decade”
Suez canal operating normally
ForexLive European morning wrap: Pound takes another kicking ahead of the NFPs
Spanish banks have no need for further aid at present
How to win a ForexLive t-shirt in just one easy step
German industrial orders may: -1.3% vs +1.2% exp
ECB’s Costa says Portugal bailout was “well -executed”

ECB’s Coeure warns of a “Japanese-style lost decade”

Posted: 05 Jul 2013 05:09 AM PDT

Eurozone recovery could be pushed back by a few quarters if down side risks materialize
worst case scenario may be even a decade
says failure of banks to de-leverage is particularly worrying
concerned that this hasn’t been completed

From the text of a speech to be given at the Amundi World Investment Forum

Euro unfazed with immediate focus on the NFPs at the bottom of the hour

EURUSD 1.2886

Suez canal operating normally

Posted: 05 Jul 2013 04:51 AM PDT

Fresh reports from reuters after a state owned newspaper had earlier said that Egypt’s military had declared a state of emergency in Suez and South Sinai peninsula following an attack on an airport in Sinai.

The Suez canal authority chief says normal services operating at the moment.

Brent crude futures had risen USD1.5 per barrel on the original story

Add:

African Union says it suspends Egypt from all activities after the govt overthrow

ForexLive European morning wrap: Pound takes another kicking ahead of the NFPs

Posted: 05 Jul 2013 04:39 AM PDT

Forex trading headlines from the European morning session 5 July

Japanese coincident indicator may +0.8% vs +1.0% prev
Japanese leading indicators may +2.8 vs +1.3 prev
Nikkei closes on session highs at 14,309.97
ECB’s Liikanen says they will re-assess decision to keep interest rate low when situation improves
German industrial orders may m/m -1.3% vs +1.2% exp -2.2% prev revised up from -2.3%
French trade balance may EUR -6 bln vs -4.5 bln prev
Swiss CPI m/m +0.1% vs -0.1% exp vs +0.1% prev y/y -0.1% vs -0.4% exp -0.5% prev
China to maintain a prudent monetary policy
SNB forex reserves down to CHF 434.85 bln in june from 444.1 bln at end of may
ECB’s Costa says Portugese bailout was well executed but badly received
EU Commission/ECB : Spanish banks do not need further aid at present
Gold drops to USD1233 before bouncing

A livelier morning than might have been expected ahead of the NFPs but it wasn’t long before attention turned back to the UK and yesterday’s dramatic sea-change statement from the BOE.

Cable started to ease lower then dropped to strong support around the barrier at 1.5000 before finally breaking through, but not following on initially. Soon came the second wave though after a failure to rally and we smashed through the next good support at 1.4980 before finally posting 1.4963 lows. EURGBP hit 0.8590 from 0.8570 in a rush then broke higher to 0.8607 before falling back. GBPAUD and GBPJPY both took at a big hit amidst renewed yen and aussie strengthening and may well have been the catalyst for triggering the accelerated declines in the pound.

USDJPY rose in early trading as the Nikkei closed higher but then the futures turned lower and we saw yen strength across the board. USDJPY dropped to 99.90, EURJPY near to strong support at 128.50 and of course GBPJPY to 149.58.

The euro has looked under pressure too as the ECB comments continue to weigh and weaker than expected data from Germany but we’ve found reasonable support in the dips so far. AUD and CAD have had a good morning by and large but Gold dropped to USD 1233 before finding a few buyers.

So a lively enough session to warm us up nicely for the main act to follow. It’s Friday, and it’s about to get more frantic.

Spanish banks have no need for further aid at present

Posted: 05 Jul 2013 03:43 AM PDT

ECB/EU Commission document via reuters

major challenge is profitability given low interest rates and rising bad loans
bank stability may be impaired by uncertainty on burden sharing, aritration processes