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June EZ retail sales -0.5% vs -0.6% exp m/m
Japan facing water emergency at Fukushima
August EZ sentix index -4.9 vs -10.0 exp
UK Markit/CIPS services PMI final july: 60.2 vs 57.2 exp
HSBC see China growth limited to 7.4% in 2013 & 2014
Coming up at the bottom of the hour
Eurozone Markit services PMI final july: 49.8 vs 49.6 exp
Technical levels 5 August
German Markit services PMI final july: 51.3 vs 52.5 exp
French Markit services PMI final july: 48.6 vs 48.3 exp
Italian Markit services PMI final july: 48.7 vs 46.5 exp
Spanish Markit services PMI final july: 48.5 vs 47.8 prev
EURGBP orders 5 August
GBPUSD orders 5 August
Shanghai Comp Index closes up 1.4% at 2050.48
European equity markets open slightly firmer
Cable fails to hold above 1.5300 again
EURUSD orders 5 August
USDJPY posts new session lows
Eurostoxx 50 futures up 0.3%

June EZ retail sales -0.5% vs -0.6% exp m/m

Posted: 05 Aug 2013 02:00 AM PDT

Prior 1.0%. Revised to 1.1%
-0.9% vs -1.2% exp y/y. Prior -0.1%. revised to +0.3%

Above expectations and with higher revisions as well.

No interest from EUR/USD

Japan facing water emergency at Fukushima

Posted: 05 Aug 2013 01:52 AM PDT

Japan’s nuclear regulator says that radio active groundwater has likely risen above Tepco’s underground barrier and that it could rise to the surface. They say if it does then it is likely to flow out very fast.

Tepco plan to to pump the groundwater will “only buy a few months to solve problem” and that Tepco lacks a “sense of crisis”.

The nuclear issue is one of the big challenges facing Abe & Co. Obviously the safety aspect to those living in the area but also a move away from nuclear has seen imports of oil rise. This will leave them open to price pressures. While it may play out in higher inflation (if oil prices rise), which they are trying for, it’s the wrong type of inflation and so could do more damage than good.

August EZ sentix index -4.9 vs -10.0 exp

Posted: 05 Aug 2013 01:47 AM PDT

Prior -12.6

UK Markit/CIPS services PMI final july: 60.2 vs 57.2 exp

Posted: 05 Aug 2013 01:28 AM PDT

56.9 prev
highest since dec 2006
comp PMI 59.5 vs 56.1

Well it was certainly a better than expected number !

GBPUSD 1.5355 from 1.5325

EURGBP lower at 0.8651

Let’s see what fresh legs it gets in a second wave

Add: 1.5366 high post in second/third wave buying but now 1.5351 again. Market was definitely long.

HSBC see China growth limited to 7.4% in 2013 & 2014

Posted: 05 Aug 2013 01:27 AM PDT

HSBC out with H1 results. Reports profit of $14.1bn up 10% from last year.

Says EU pay rules (directors salaries) would have damaging effect and would hurt position in key markets
Long term economic trends intact

Again another story of cost cutting as HSBC have been increasing disposals and closures.

Coming up at the bottom of the hour

Posted: 05 Aug 2013 01:16 AM PDT

Well, 08.28 GMT to be precise

UK Services PMI final reading for July

57.2 exp vs 56.9 prev

Market obviously factoring in a stronger than expected number judging by the amount of GBP bought so far this morning, eventually forcing cable through strong sell resistance at 1.5310 and triggering stops, as highlighted in my orderboard

They may be right but the contrarian in me invariably is always looking for the buy rumour/sell fact scenario, such as we saw after Friday’s NFPs.If the market gets too loaded on the hype where else can the buyers come from?

It will have to be a very good number to find a fresh surge.

Just my thoughts from experience in these scenarios, and not just because I’m a natural cable seller.

We’ll find out soon enough.