Canadas New Gov’t Commits To Balancing Budget,Spend Cutbacks

---

• Canadas New Gov’t Commits To Balancing Budget,Spend Cutbacks
• ForexLive US wrap: A combo platter boosts EUR/USD
• Ain’t no dip in this euro
• Fed’s Rosengren:Prime Money Mkt Funds ‘Still Pose A Problem’
• White House mid-year economic review delayed
• Stocks slide but oil rises
• German FinMin: Conclusion of Greek mission a “good sign”
• Fed’s Tarullo: Systemically Important Banks Face Hard Limits
• Update: EMU/IMF Expect Approval Of Next Aid Tranche For Greece
• ECB’s Gonzalez-Paramo: Key to a market economy is that debts are paid
• US Labor Secty: Debt Ceiling, Budget Need To Get Resolved
• Never mind. Europe is the greatest place evah!
• EU’s Rehn: May boost “technical help” on tax colloection, assets sales
• USD/JPY absorbs heavy sales; holds its ground
• Text: EMU/IMF Expect Approval Of Next Aid Tranche For Greece
• 1.4600 barriers?
• Official statement from Troika
• Eurogroup’s Juncker: EU to provide new aid plan for Greece
• Risk rebound starting to falter
• Update:Greece Says Troika Talks Over;Timing Of Report Unclear

Canadas New Gov’t Commits To Balancing Budget,Spend Cutbacks Posted: –Parliament Re-Opens W/Promise To Establish Nat’l Securities Regulator By Courtney Tower OTTAWA (MNI) – Canada’s Conservative government, with its new-found majority in Parliament, committed Friday to eliminating federal deficits by 2014, a year earlier than planned. A new session of Parliament following the May 2 election heard the traditional opening speech, cast in broad-bush terms [...]

ForexLive US wrap: A combo platter boosts EUR/USD Posted: US non-farm payrolls rise 54,000; jobless rate rises to 9.1% Non-manufacturing ISM rises to 54.6 in May from 52.8 in April EU/IMF/ECB Troika: Mission ends positively; aid likely released in early July; tax collection and privatization to be overseen by “independent” entities; more Greek aid likely US yields fall 3.5 bp to 2.99% S&P 500 [...]

Ain’t no dip in this euro Posted: Stocks fell nearly 12% at one point a few minutes ago but EUR/USD dipped only as deep at 1.46165. Bid to old boots as flatulent, hypertensive and diabetic partner in editorial crime would say.

Fed’s Rosengren:Prime Money Mkt Funds ‘Still Pose A Problem’ Posted: By Steven K. Beckner (MNI) – Boston Federal Reserve Bank President Eric Rosengren issued an unusually strong warning Friday about the vulnerability of some money market funds to unexpected credit shocks — especially those with large exposure to European bank debt. Rosengren said it is “particularly prudent” to address money market fund vulnerabilities “now” because [...]

White House mid-year economic review delayed Posted: The WH says they won’t release a mid-year economic review because of ongoing talks with Congress over long-term deficit reduction.The review is required by July 16. Don’t want to give the Reps any more ammunition, eh boys? No need for budgets, following mandates…rules don’t apply to the Obama White House…

Stocks slide but oil rises Posted: Commodities and stocks are diverging late in the day. EUR/USD is edging from fresh session highs i the low 1.4640s, now at 1.4623. I guess it is keeping half an eye on equities (or half a en electronic tendril, if you are an algo…) Look for pullbacks to be limited to the 1.4585/90 level max. [...]

German FinMin: Conclusion of Greek mission a “good sign” Posted: German finance minister Schaeuble says the complete report will be presented next week. The completion of the mission is a good sign, he says. Further steps will be decided after the report is evaluated. Standards are so low regarding Greece that just finishing the review is seen as an achievement… Kudos to Schaeuble for achieving [...]

Fed’s Tarullo: Systemically Important Banks Face Hard Limits Posted: –Confident On Bank Cap Convergence Agreement Between ‘Now And The Fall’ By Brai Odion-Esene WASHINGTON (MNI) – With the banking industry reported to be girding for another attempt to quash Dodd-Frank limits, the Federal Reserve governor with the banking industry portfolio Friday piled on the warnings as never before, that the Fed is determined that [...]

Update: EMU/IMF Expect Approval Of Next Aid Tranche For Greece Posted: –Juncker Says New Aid Will Be Approved w/Private Creditor Contribution –Includes Minor Revision To Troika Statement ATHENS/LUXEMBOURG (MNI) – The next E12 billion tranche of the current E110 billion bailout package for Greece should be disbursed in early July, after the financing details of additional aid for the country are concluded in the coming weeks, [...]

ECB’s Gonzalez-Paramo: Key to a market economy is that debts are paid Posted: Vienna-style program must be part of a wider program Any private participation in Greece must be voluntary

US Labor Secty: Debt Ceiling, Budget Need To Get Resolved Posted: By Ian McKendry WASHINGTON (MNI) – Labor Secretary Hilda Solis Friday stressed the need for Capitol Hill to come to an agreement on raising the nations debt ceiling and agreeing on a budget. “I would hope the sooner that they can come to an agreement on things like that, that there will be more confidence [...]

Never mind. Europe is the greatest place evah! Posted: EUR/USD rises as high as 1.4640 as the late-week melt-up continues. Major technical damage has been done to the topside today, so it looks as though resistance is futile. Buy-the-dips will be the mood this afternoon toward 1.4585/90, if so lucky.

EU’s Rehn: May boost “technical help” on tax colloection, assets sales Posted: Vee haf vays… He too says Eurogroup will look into further Greek aid Decisive Greek reforms to enable more help from EU More aid. What could go wrong? Looks like they still need EUR/USD as the pair begins to accelerate to the topside, now at 1.4618. Stocks, commodities are all on the rebound.

USD/JPY absorbs heavy sales; holds its ground Posted: Traders report very strong sales from US real money late in the London session but the greenback absorbed the flows well. From 80.05 lows after the employment report, we recovered as high as 80.66 after ISM and now trade at 80.41.

Text: EMU/IMF Expect Approval Of Next Aid Tranche For Greece Posted: ATHENS (MNI) – The next E12 billion tranche of the bailout for Greece is should be available in early July once the financing modalities for the country’s economic program are concluded in the coming weeks, the IMF, the ECB and the European Commission said Friday in a joint statement. Noting a rebound in exports, declining [...]

1.4600 barriers? Posted: Probably. We had them at 1.4450 and 1.4500 as well as 1.4550, so I’d very much expect there to be 1.4600 barriers. EUR/USD has cleared resistance at 1.4585/90 and is closing in on 1.4600 as we write. 1.4601 the EBS high so far.

Official statement from Troika Posted: Next tranche to be available in July based upon successful end of talks Greece made significant progress but fiscal and structural reform must be stepped up Expects economy to stabilize around the turn of the year Greek government will set up independently-managed privatization agency Liquidity remains tight but policies are in place to ensure it [...]

Eurogroup’s Juncker: EU to provide new aid plan for Greece Posted: Troika’s conclusion is good news for Europe and Greece Greece willing to set up privatization fund Aid conditionality will include voluntary private sector involvement Panadreou says Additional aid for Greece being discussed (!) Greece will honor its obligations Greece will continue to work hard Much work to be done, markets still skeptical

Risk rebound starting to falter Posted: The short-covering rally in risk looks like it may have run its course. EUR/USD topped out at 1.4586, the S&P at 1308.50 (now at 1303), oil at 100.13 (now at $99.44). Could be a quiet balance of the session on a Summer Friday.

Update:Greece Says Troika Talks Over;Timing Of Report Unclear Posted: –Adds Background On Political Dissent, New Bailout Talks ATHENS (MNI) – The Greek Finance Ministry announced Friday afternoon that the government has concluded its talks with technical experts from the European Commission, the IMF, and the ECB, but it remained unclear whether the report of the so-called “troika” would be issued later today, over the [...]