Asian sovereign selling EUR/USD

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Around current levels ie 1.4314. In fact it’s Korea. So there we have it, Middle Eastern sovereign buying vs Asian sovereign selling. Hopefully they’ll cancel each other out and we can sit doing nothing for the rest of the European morning Have I mentioned; I really need a looooooooong holiday

Spain sells 1500 mln of 2014 bond, 1497 mln of 2016 bond

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Bid to cover ratio 2014 bond 2.3 Bid to cover ratio 2016 bond 2.9 (up nicely from previous 1.9) Average yield 2014 bond 4.291% Average yield 2016 bond 4.871% (up from previous 4.549%)

Portuguese 5 year credit default swaps rise to record 1,015 bps, up 95 bps on day

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Greek 5 year credit default swaps rise to 2,200 bps, up 110 bps on day Irish 5 year credit default swaps rise to 883 bps, up 47 bps on day

UK Analysis: Manufacturing Bounces Back Sharply In May

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–May manufacturing output +1.8% m/m; +2.8% y/y –May industrial production +0.9% m/m; -0.8% y/y LONDON (MNI) – Manufacturing output rose at the fastest monthly pace for more than a year, as production bounced backed from a weak April, data released by National Statistics Thursday showed. The figures confirm that the large April decline was indeed [...]

UK DATA: May manufacturing output +1.8% m/m; +2.8%…

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UK DATA: May manufacturing output +1.8% m/m; +2.8% y/y –May industrial production +0.9% m/m; -0.8% y/y ———————————————————————— Manufacturing output rose at the fastest monthly pace for more than a year, as production bounced backed from a weak April. The figures confirm that the large April decline was indeed a one off caused by the extra [...]

UK May industrial production +0.9% m/m

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Slightly weaker than median forecast of +1.1% But still highest since March 2010. Manufacturing production +1.8% m/m, stronger than median forecast of +1.0%. Also highest since March 2010.

Middle Eastern sovereign buying in EUR/USD

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And we’re back over 1.4300 at 1.4305. The phrase I’ve heard is “buying back” which intimates covering short possies. Guess they don’t want to go into the ECB rate decision/Trichet press conference overly exposed. And who can blame them.

US DATA: Improving trends in consumer credit hit a…

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US DATA: Improving trends in consumer credit delinquencies hit a soft patch as the economy slowed in the first quarter of 2011 with five of eleven loan categories showing slightly higher delinquencies, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin. Bank card delinquencies rose 12 basis points to 3.40% of all accounts compared [...]

Cable holding up ok so far

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Presently at 1.5990, marginally firmer from around 1.5975 when I sat down. Talk of “Canadian name” buying decent amounts of cable in recent trade. Bank of England widely expected to leave rates/QE on hold later today. 08:30 GMT: UK industrial production for May expected +1.1% m/m, -0.5% y/y; manufacturing production +1.0% m/m, +2.1% y/y UPDATE: [...]

Italian/German 10 year bond spread widens to 224 bps

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Highest since Italy joined the euro. It’s a historic moment. Let’s have a party!! EUR/USD trying to steady, presently at 1.4290 from session low 1.4276.

Moody’s downgrades Portuguese banks’ govt guaranteed debt

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Who’d have thunk it? First the country, then the banks. Hardly a surprise. EUR/USD little easier at 1.4307. UPDATE: Hedge fund selling notable post Moody’s Portuguese banks downgrade. We’re down at 1.4285.

International banks meeting IIF today in Rome – Italy Treasury Source

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IIF to discuss private creditors’ role in resolving Greek crisis

FRANCE DATA: May sa trade deficit rises to new high..

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FRANCE DATA: May sa trade deficit rises to new record high of E7.422 bln from E7.174 bln in April (revised from -E7.144 bln). –Deficit larger than expected; MNI survey median forecast -E6.5 bln –May sa exports -0.4% m/m; sa imports +0.3% m/m

French May trade balance -7.4 bln

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Worse than median forecast of -6.4 bln. Does anyone care? Guess not.

Stoxx Europe 50 futures up 0.7%

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DAX futures up 0.8%, CAC 40 futures up 0.7%.

EUR/USD steady in Asia

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Sits at 1.4322, effectively unchanged from North America’s Wednesday close. I’m going to go out on a limb here again and predict we have a quiet session this morning ahead of the ECB rate decision. If all hell breaks loose like yesterday, then I’ll readily accept your grateful thanks. The only reason we had yesterdays’ hectic activity [...]

Signals to expect from ECB’s Trichet

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WSJ article

ForexLive Asian market wrap: AUD rallies after strong jobs data

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Australian economy adds 54,000 new full-time jobs, unemployment rate stays steady at 4.9% US Treasury looking at options to stave off default China expected to pause on future rate hikes Japan’s May machinery orders stay strong at +3.0% Thai PM elect: Will allow THB to strengthen against USD Regional stockmarkets recover to be +0.5% on [...]

China likely to pause on further rate hikes

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China raised rates by 25 bps late yesterday and analysts now seem to be of the opinion that there will not be any further rises this year. The AUD and NZD were largely unaffected by the event, just as they were unaffected last time, so that particular correlation is under threat.