Your forexlive

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• EUR/USD extends recovery
• France’s Lagarde: Govt has a first draft for a deal with French banks on Greek debt rollover
• Greece’s 5 year credit default swaps rise to 2,150, up 70 bps on day
• German Dep FinMin: Expect Greek Parliament will agree additional reform measures this week
• French Banks, Treasury Proposing 30-Year Greek Debt Rollover
• German Dep FinMin: Euro zone debt crisis is not a currency crisis, not a euro crisis
• Spain’s EconMin Salgado: Thinks Greece austerity plan will go ahead
• Cable edges higher in early trade
• Talk Bank of Korea sold more than $500 mln to support won Monday
• PASOK MPs wavering over support for fiscal plan
• USD/JPY flows
• George Soros says it is ‘probably inevitable’ a country will leave euro
• Germany’s Weber slams rescue efforts – WSJ
• EUR/USD trades lower in Asia
• Analysts: Japan Output to Rebound Sharply; 2H Pickup Crucial
• More US fund repatriations expected this week
• ForexLive Asian market wrap: USD continues with steady recovery
• Greek deputy PM: Some parts of austerity measures may be hard to deliver
• USD/CAD orders
• Intervention expected soon in EUR/CHF

EUR/USD extends recovery Posted: Sources note a large Japanese bank buying very substantial amounts of EUR/USD in recent trade and we’re up at 1.4185. Earlier had reports of sell orders clustered 1.4190/00. Will be interesting to see if they can hold this latest surge.

France’s Lagarde: Govt has a first draft for a deal with French banks on Greek debt rollover Posted:

Greece’s 5 year credit default swaps rise to 2,150, up 70 bps on day Posted: Portugal’s 5 year credit default swaps rise to 860 bps, up 30 bps on day Ireland’s 5 year credit default swaps rise to 825 bps, up 21 bps on day

German Dep FinMin: Expect Greek Parliament will agree additional reform measures this week Posted: Will enable a decision at euro zone finance ministers’ meeting on July 3. Euro is in danger of losing legitimacy (not sure what he means by that, will await details) Must be prepared for losing Greek parliamentary vote on reforms UPDATE: Legitimacy equals credibility in this context. All’s clear.

French Banks, Treasury Proposing 30-Year Greek Debt Rollover Posted: PARIS (MNI) – France’s major banks, in collaboration with the French Treasury, have drafted a proposal to reinvest 70% of their maturing Greek sovereign bonds, and they are now attempting to convince other European banks to go along with the idea. European banks will meet today in Rome under the auspices of the Institute for [...]

German Dep FinMin: Euro zone debt crisis is not a currency crisis, not a euro crisis Posted: Euro zone budget situation better than in Japan and U.S. We are on the way to a global multipolar currency system (as long as it’s not bipolar) Euro zone is prepared for future sovereign debt crises through rescue mechanisms ESM is very close to idea of European Currency Fund

Spain’s EconMin Salgado: Thinks Greece austerity plan will go ahead Posted: Sounds like it’s going to be a very tight call to me.

Cable edges higher in early trade Posted: Presently at 1.5960 from around 1.5925 when i sat down. Talk still doing the rounds re HSBC dividend payment and the need for cable to be bought. On Friday I was getting reports buy orders related to the HSBC interest were lined up at 1.5960 down to 1.5930, so things somewhat confused. Hard to work out what’s [...]

Talk Bank of Korea sold more than $500 mln to support won Monday Posted:

PASOK MPs wavering over support for fiscal plan Posted: 4 deputies indicate that they might not support austerity package.

USD/JPY flows Posted: Decent buy orders clustered 80.00/20 (as reported late last week), sell stops below 80.00. Sell orders clustered 81.00/10, buy stops above there.

George Soros says it is ‘probably inevitable’ a country will leave euro Posted: George Soros has said it is ‘probably inevitable’ a country will eventually exit the euro zone, calling for policymakers to come up with a plan B that could rescue the European Union from looming economic collapse.

Germany’s Weber slams rescue efforts – WSJ Posted: Former Bundesbank chief Axel Weber says Europe needs to consider guaranteeing all Greece’s outstanding debt, because Athen’s only viable alternative is a messy default that would be more costly and risk sparking broader financial turmoil.

EUR/USD trades lower in Asia Posted: Down at 1.4130 presently from a North American close Friday up around 1.4185. We’ve been as low as 1.4101 so far. Sentiment toward the single currency remains fragile ahead of this weeks Greek austerity vote. Things haven’t been helped by the Greek deputy PM warning that rebel lawmakers may block some reforms sought by international lenders, while Austrian [...]

Analysts: Japan Output to Rebound Sharply; 2H Pickup Crucial Posted: TOKYO (MNI) – Japan’s industrial output will post a sharp rebound in coming months, buoying the economy together with fiscal spending to rebuild quake-hit northern regions, but whether consumer spending will emerge later in the year is yet to be seen, economists said. Among bullish forecasters, Yuji Shimanaka, chief economist at Business Cycle Research of [...]

More US fund repatriations expected this week Posted: It’s the end of H1 and also just ahead of the big holiday season in the US. US fund managers have been noted sellers of Asian and Australasian equities and are repatriating their money, leading to strong demand for USD/Asia and weighing on AUD/USD and NZD/USD. This could continue for a few more days according [...]

ForexLive Asian market wrap: USD continues with steady recovery Posted: French government and banks agree on Greek debt proposal: Press reports Mersch: If Greece defaults, then chaos Schaueble: Convinced Greece will pass austerity measures Greek deputy PM: Some parts of austerity package may not pass UK house prices slightly lower in June Chinese industrial profitability +27.9% YoY Chinese Premier visiting Germany this week; reiterated support [...]

Greek deputy PM: Some parts of austerity measures may be hard to deliver Posted: That’s not what the market wants to hear from Mr Pangalos. The UK Guardian newspaper reports.

USD/CAD orders Posted: The information in the Loonie has been very accurate in recent weeks and I’m sorry now that I never trade the pair Option related offers starting at .9950 Selling getting heavier towards 1.0000 with stops immediately above Bids firm and solid .9650/.9700 Looks like a range trader’s paradise

Intervention expected soon in EUR/CHF Posted: I’m hearing that heavy bids are lined up below 1.1800 in EUR/CHF, getting heavier towards 1.1750, with talk that the SNB will take action to slow down the fall in EUR/CHF. We’ve heard this sort of talk before when EUR/CHF first fell below 1.2500 but the suggestion is that if it falls below 1.1500 then [...]