forex update, forexlive ENewsletter

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• DCLG: UK April House Prices -1.1% M/M; -0.3% Y/Y
• EUR/USD remains marginally firmer on the day
• UK Analysis: May Inflation Unchanged At Two Year High
• UK DATA: May CPI +0.2% m/m; +4.5% y/y vs Apr +4.5%…
• UK May CPI +0.2% m/m, +4.5% y/y
• Germany Seeks Bids For E6 Bn Top-Up Of 1.75% 2Y Schatz Jun 15
• ECB Noyer:Debt Resched No Solution;Must Prevent 2d-Rd Effects
• ECB’s Noyer: We must absolutely avoid anything that leads to declaration of default in Greece
• China raises banks’ required reserves by 50 bps
• ECB’s Noyer: All developed countries, not just Europe, have seen 30% rise in debt since crisis
• FRANCE DATA: April current account deficit E4.8 bln..
• French April current account balance -4.8 bln
• Rumour rumour
• Swiss govt maintains 2011 GDP growth forecast at 2.1% (March foreast 2.1%)
• Japan Apr Industrial Output Revised +1.6% M/M Vs Prelim +1.0
• EUR/USD marginally firmer during Asian trade
• ForexLive Asian market wrap: Chinese CPI not as high as feared
• EUR/JPY, AUD/JPY make new session highs after BOJ
• BOJ: Keeps call rate target unchanged at 0.1%
• Cable stalling ahead of reported sell orders 1.6415/25

DCLG: UK April House Prices -1.1% M/M; -0.3% Y/Y Posted: LONDON (MNI) – UK house prices slipped 1.1% on the month in April and by 0.3% on the year, the Department of Communities and Local Government said today. The DCLG said that the average house prices dropped 0.3% over the three months through April, compared to a quarterly decrease of 0.4% over the quarter to [...]

EUR/USD remains marginally firmer on the day Posted: Presently at 1.4453, up from around 1.4430 when I arrived, having been as high as 1.4472. Eastern European names and the Big German among notable sellers in recent trade. Talk of sell orders clustered 1.4475/85 and more around 1.4500, with buy stops said to be gathering through 1.4505.

UK Analysis: May Inflation Unchanged At Two Year High Posted: –May CPI +0.2% m/m; +4.5% y/y vs Apr +4.5% y/y; in-line with median –May core CPI unch. m/m; +3.3% y/y vs Apr +3.7% y/y; below 3.3% median –May RPI +0.3% m/m; +5.2% y/y; May RPIX +0.3% m/m; +5.3% y/y LONDON (MNI) – Consumer price inflation remained at its highest level for more than two years [...]

UK DATA: May CPI +0.2% m/m; +4.5% y/y vs Apr +4.5%… Posted: UK DATA: May CPI +0.2% m/m; +4.5% y/y vs Apr +4.5% y/y –May core CPI unch. m/m; +3.3% y/y vs Apr +3.7% y/y; –May RPI +0.3% m/m; +5.2% y/y; May RPIX +0.3% m/m; +5.3% y/y ———————————————————————— Consumer price inflation remained at its highest level for more than two years in May, as a fall in [...]

UK May CPI +0.2% m/m, +4.5% y/y Posted: Exactly in line with median forecasts. Matches April’s 2 1/2 year high. ONS: Biggest upward impact on CPI from food. You’re not kidding. My food bill this past Monday was the biggest in living memory

Germany Seeks Bids For E6 Bn Top-Up Of 1.75% 2Y Schatz Jun 15 Posted: FRANKFURT (MNI) – The German federal government is seeking bids for the E6 billion top-up of its 1.75%-coupon, two-year notes with a June 2013 maturity, the Bundesbank announced Tuesday. Bids are due by 900 GMT on Wednesday, with results of the allocation to be announced shortly thereafter. Including the E7 billion outstanding of this issue, [...]

ECB Noyer:Debt Resched No Solution;Must Prevent 2d-Rd Effects Posted: PARIS (MNI) – Debt rescheduling is not an appropriate way out of the sovereign crisis, European Central Bank Governing Council member Christian Noyer said Tuesday. In his introductory letter to the annual report of the Bank of France, which he heads, Noyer said that “compliance with strict, rigorous conditionality is crucial to the design and [...]

ECB’s Noyer: We must absolutely avoid anything that leads to declaration of default in Greece Posted: Debt in default cannot be accepted as collateral by the ECB If a private sector solution can be found that avoids default, that would be appropriate

China raises banks’ required reserves by 50 bps Posted: Not really a surprise. Market had been on high alert for some sort of additional Chinese tightening. AUD/USD down at 1.0634 from session high 1.0653. Talk of buy stops now through 1.0660.

ECB’s Noyer: All developed countries, not just Europe, have seen 30% rise in debt since crisis Posted: Analysts seem to have underestimated “force and coherence” of reforms undertaken since crisis Doubt over private sector involvement in bailout packages is raising market rates, risk if contagion Is a “dangerous illusion” to think reducing or rescheduling debt would ease budget adjustment European states must strictly respect the seniority of debt, otherwise quality will be [...]

FRANCE DATA: April current account deficit E4.8 bln.. Posted: FRANCE DATA: April current account deficit E4.8 bln after Mar -E4.1 bln - Bigger merchandise goods shortfall (-E7.3 bln vs -E6.3 bln) offsets - Higher services surplus (+E1.3 bln vs +E1.0 bln) and - Bigger revenues surplus (+E3.4 bln) vs (+E3.3 bln). - No change in transfers deficit (-E2.2 bln)

French April current account balance -4.8 bln Posted: Versus unrevised -4.1 bln in March.

Rumour rumour Posted: Rumour of imminent Belgian downgrade on the street. Take it for what you will, but the talk’s out there. And this is no doubt what’s spurring rumour.

Swiss govt maintains 2011 GDP growth forecast at 2.1% (March foreast 2.1%) Posted: Lowers 2012 GDP growth forecast to +1.5% from March forecast of +1.9% 2011 inflation +0.7% (previous +1.0%), 2012 inflation +0.7% (previous +0.9%) Expects franc to stay strong. Further strong rise would seriously hurt growth

Japan Apr Industrial Output Revised +1.6% M/M Vs Prelim +1.0 Posted: TOKYO (MNI) – Japanese industrial production rose a revised 1.6% mon-on-month in April, revised up sharply from the preliminary reading of +1.0%, data from the Ministry of Economy, Trade and Industry showed on Tuesday. The rebound from the record 15.5% drop in March was led mainly by higher output of general machinery. Last month, METI’s [...]

EUR/USD marginally firmer during Asian trade Posted: EUR/USD up at 1.4433, marginally firmer compared to a North American close Monday down around 1.4410. Asian stocks have made ground, underpinned by Chinese data which included lower than feared inflationary data and solid production and retail sales numbers. The market has seemingly taken in it’s stride the news that European finance ministers are to hold an emergency [...]

ForexLive Asian market wrap: Chinese CPI not as high as feared Posted: China’s CPI +5.5% YoY, higher than the 5.4% forecast but still lower than the 5.8% which had been feared China’s PPI +6.8%, industrial output +13.3%, and retail sales +16.9% BOJ leaves call rate unchanged, announces new credit line for growth industries Japanese big manufacturing business sentiment falls heavily Australian business conditions index worsens UK RICS [...]

EUR/JPY, AUD/JPY make new session highs after BOJ Posted: The Nikkei is also trading at session highs. Nothing surprising in the BOJ actions, with the new credit line for growth industries having been widely touted beforehand.

BOJ: Keeps call rate target unchanged at 0.1% Posted: Will increase size of loan scheme for growth industries, sets aside Yen500 billion for new credit Expects moderate economic growth to resume later in 2011 Economy still facing downward pressure but improvement showing

Cable stalling ahead of reported sell orders 1.6415/25 Posted: Nothing overly heavy, just the usual corporate plays I’m told with offers at 1.6415/25 stalling the advance. EUR/CHF has also continued on with its bounce after giving up on another 1.2000 test.