EUR/USD slips back below 1.4000 again

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• EUR/USD slips back below 1.4000 again
• BOE: Major Banks Q1 Corporate Loans On Track To Hit Target
• More Swiss National Bank EUR/CHF talk
• Greek 5 year credit default swaps 1390 bps, up 50 bps on day
• Italy May consumer morale rises to 106.5
• Euro zone flash manufacturing PMI 54.8 in May
• Talk sovereign selling in USD/CAD
• ECB Weidmann: Infl. Expectations Rise Must Be Taken Seriously
• Rumour SNB active in EUR/CHF
• India buys cable
• German May flash manufacturing PMI 58.2
• ECB’s Nowotny: Risks of an L-shaped or W-shaped recovery have decreased
• Nowotny: Econ Signals From Latest EU Fcasts ‘Quite Positive’
• ECB’s Weidmann: Must monitor closely whether second-round effects materialise from commodity price rises
• French manufacturing PMI for May 55.0
• Shanghai share index extends losses
• Moody’s: Bigger than expected contraction in Japan GDP credit negative
• Italy attacks Standard & Poor’s after credit downgrade
• Eurostoxx 50 futures down -1.1%
• JAPAN DATA: Crude steel production in April fell on..

EUR/USD slips back below 1.4000 again Posted: Presently at 1.3990. Real money still selling apparently in recent trade. Someone just popped up and told me 1.3965 is 100 dma. Guess that makes it pretty important technical support

BOE: Major Banks Q1 Corporate Loans On Track To Hit Target Posted: LONDON (MNI) – Bank of England data suggests the five major banking groups in the UK are broadly on track to hit the corporate lending target agreed with the government. Bank of England data shows the five UK banking groups provided gross corporate lending facilities of stg47.3 billion in the first quarter of this year. [...]

More Swiss National Bank EUR/CHF talk Posted: Latest talk has the central bank sitting on the bid at 1.2360. We’re presently at 1.2365.

Greek 5 year credit default swaps 1390 bps, up 50 bps on day Posted: Italian 5 year credit default swaps 176 bps, up 15 bps on day Portuguese 5 year credit default swaps 660 bps, up 23 bps on day Spain 5 year credit default swaps 277 bps, up 16 bps on day Irish 5 year credit default swpas 665 bps, up 23 bps on day EUR/USD sits 1.3998, [...]

Italy May consumer morale rises to 106.5 Posted: Up nicely from 103.7 in April and better than median forecast of 103.5. Ohhhh, those confident Italians!!

Euro zone flash manufacturing PMI 54.8 in May Posted: Down sharply from 58.0 in April and below median forecast of 57.4. Lowest since October. Services PMI 55.4, down from 56.7 in April and below median forecast of 56.5. Lowest since December.

Talk sovereign selling in USD/CAD Posted: Been getting reports a North East Asian sovereign has been seen selling USD/CAD up in the .9780′s. We’re no lower as yet. Whenever I hear North East Asian I think China. Above current .9780, talk of buy stops gathering in 9800/05 area.

ECB Weidmann: Infl. Expectations Rise Must Be Taken Seriously Posted: BERLIN (MNI) – The rise of long-term inflation expectations in the Eurozone last month has to be taken seriously and is a sign of a cloudier price outlook, ECB Governing Council member Jens Weidmann said according to a draft of a speech to be delivered Monday. The Bundesbank president reiterated that a temporary inflation rise [...]

Rumour SNB active in EUR/CHF Posted: Take it for what you will, but there’s talk out there. Cross at 1.2368 from session low 1.2349. Not much of a bounce so far, it has to be said. Ummmmmm? I’d have thought it would have bounced more aggressively on official interest.

India buys cable Posted: In recent trade. We’re at 1.6145 from session low 1.6140, having lost half a cent in early European trade. Will be interesting to see whether they can slow the sell-off. Certainly going somewhat against the flow.

German May flash manufacturing PMI 58.2 Posted: Way lower than 62.0 in April and median forecast of 61.0. Lowest read since November last year. Services PMI 54.9, down from 56.8 in April and well below median forecast of 57.0. Lowest read since Spetember last year. EUR/USD hits session low 1.4010. Big German, real money, major US bank, sovereign selling all noted in [...]

ECB’s Nowotny: Risks of an L-shaped or W-shaped recovery have decreased Posted: But one cannot exclude possibility of a slowdown in economy Need to think about reform package to distribute costs of crisis in an equitable manner Although euro zone divergence is worrisome, we should not focus on problematic cases alone Economy now clearly on a sustainable path to recovery

Nowotny: Econ Signals From Latest EU Fcasts ‘Quite Positive’ Posted: VIENNA (MNI) – The signals coming from the latest forecasts for European economic developments are “quite positive” even if a slowdown cannot be ruled out, European Central Bank Governing Council member Ewald Nowotny said Monday. The head of the Austrian National Bank opened a conference by saying that “the signals coming from the most recent [...]

ECB’s Weidmann: Must monitor closely whether second-round effects materialise from commodity price rises Posted: Have to also look at upside inflation risks from improving business cycle Have to take rise in long-term inflation expectations seriously, is a sign of increasing price pressures when monetary policy is expansive Blurring monetary and fiscal policy responsibilities creates danger for monetary stability I think we can safely label those remarks “hawkish.”

French manufacturing PMI for May 55.0 Posted: Down from 57.5 in April and well below median forecast of 57.0. Services PMI 62.8, marginally lower than April’s 62.9, better than median forecast of 62.0. EUR/USD sits at 1.4035, up from session low 1.4019 as protection of well-documented 1.4000 barrier option interest kicks in.

Shanghai share index extends losses Posted: Down 3% at three and a half month low. Oil seeing further losses, NYM light crude off over two bucks. Gold at session low $1507.99. EUR/USD continues sell-off against backdrop of risk aversion, presently at 1.4025.

Moody’s: Bigger than expected contraction in Japan GDP credit negative Posted: Scale of output, income loss caused by Japan quake may already have lowered future growth trajectory of Japan economy Risk Japan companies may lose global market share due to supply chain disruptions Worse than expected Japan GDP adds urgency to PM plan to introduce second supplementary budget Extent to which govt will share burden of [...]

Italy attacks Standard & Poor’s after credit downgrade Posted: Italian Finance Minister calls downgrade “strange.”

Eurostoxx 50 futures down -1.1% Posted: DAX futures down -1.1%, CAC 40 futures down -1%

JAPAN DATA: Crude steel production in April fell on.. Posted: JAPAN DATA: Crude steel production in April fell 6.3% on year, posting the second straight monthly y/y fall, following -2.7% in March, due to lingering aftermath of the March 11 earthquake and tsunami, data released by the Japan Iron and Steel Federation showed. Economists often use this piece of data in forecasting industrial output. Steel [...]