Spanish 5 year credit default swaps fall to 341 bps, down 12 bps on day

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• BOE Miles: Circumstances Not Right For More QE “Thus Far”
• ECB Mersch: Leaving the Euro Area Not An Option for Members
• Spanish 5 year credit default swaps fall to 341 bps, down 12 bps on day
• BOE Miles: UK economy on fragile recovery path
• Dow Jones to publish interview with BOE’s Miles at 08:30 GMT
• AUD/USD barrier option interest noted
• Sarkozy set to clash with Merkel over euro bonds
• German BGA export assn Pres Boerner: Urges Merkel and Sakozy to agree to introduce eurobonds at Tuesdays meeting
• Euro zone probably wouldn’t survive insolvent Italy – DJ
• Eurostoxx 50 futures up 1% early
• EU Rehn: Don’t expect Italy, Spain, France to tap rescue funds – DJ
• I should know this, but I don’t……..
• Asking prices for UK property show a decline
• ECB is euroland’s last hope as bail-out machinary fails to resolve crisis
• Thai FinMin: To keep fiscal discipline
• European stocks seen opening marginally higher
• EUR/CHF on a 1.1200 handle!! Who wud have thunk it?
• ForexLive Asian market wrap: CHF falls by 2% on SNB reports
• Germany must defend the Euro
• Around the markets

BOE Miles: Circumstances Not Right For More QE “Thus Far” Posted: –BOE Miles: UK On A Recovery Path, But It’s Fragile –Miles Comments In An Interview With Dow Jones Newswires London (MNI) – The circumstances have not been right for further quantitative easing, at least so far, Bank of England Monetary Policy Committee member David Miles says in an interview with Dow Jones Newswires. The MPC [...]

ECB Mersch: Leaving the Euro Area Not An Option for Members Posted: FRANKFURT (MNI) – Leaving the euro is not an option for any member state, European Central Bank Governing Council member Yves Mersch said in an interview with the China Business News (CBN) published Monday. “The euro is an anchor of stability and confidence. I have no indication that this might change in the future. Leaving [...]

Spanish 5 year credit default swaps fall to 341 bps, down 12 bps on day Posted: Italian 5 year credit default swaps fall to 339 bps, down 13 bps on day French 5 year credit default swaps fall to 149 bps, down 4 bps on day EUR/USD sits at 1.4300 in quiet trade.

BOE Miles: UK economy on fragile recovery path Posted: Now not right time for more asset purchases “Most likely outcome” is that activity increases Inflation to return to target level Central case of inflation report reflects my view Risks to both inflation,. growth outlook Big risks to outlook come from euro area Expects policy to eventually move back to normal

Dow Jones to publish interview with BOE’s Miles at 08:30 GMT Posted: Maybe we’ll see some price action in cable. That pairing sits at 1.6292, effectively unchanged on the day.

AUD/USD barrier option interest noted Posted: At 1.0450. Sell orders 1.0440 protecting said interest. We sit at 1.0420.

Sarkozy set to clash with Merkel over euro bonds Posted: The Independent

German BGA export assn Pres Boerner: Urges Merkel and Sakozy to agree to introduce eurobonds at Tuesdays meeting Posted: Without any restrictions on volume. Eurobonds should only be issued under strict conditions Without eurobonds there is risk of downward spiral leading to worldwide depression (oh-eh!!!)

Euro zone probably wouldn’t survive insolvent Italy – DJ Posted: Dow Jones reporting on comments made by Guenther Oettinger, European Commissioner for energy and a member of Merkel’s CDU party, in an interview with German daily Handelsblatt. The official opined that the euro zone would “probably” blow up if Italy were to become insovent. Probably something we’re all pretty much aware of already. Oettinger warned [...]

Eurostoxx 50 futures up 1% early Posted: DAX futures up 1.1%, CAC 40 futures up 0.9%

EU Rehn: Don’t expect Italy, Spain, France to tap rescue funds – DJ Posted: Italy, Spain, France will win back confidence through reforms EU banks are now much more resilient than in 2008 Don’t expect post-Lehman style collapse Endangered states must save rigorously ECB’s intevention “necessary” July summit guidelines must be implemented by September

I should know this, but I don’t…….. Posted: It’s Assumption Day and a holiday in parts of the World today. Do people actually take the day off work?

Asking prices for UK property show a decline Posted: Personally think that’ll be the way of it for the remainder of the year.

ECB is euroland’s last hope as bail-out machinary fails to resolve crisis Posted: Love him or loathe him. Latest from AEP at The Telegraph.

Thai FinMin: To keep fiscal discipline Posted: Good show!! You just can’t beat a little “discipline”

European stocks seen opening marginally higher Posted: Financial bookies see FTSE up around +0.5%, DAX up around +0.8%, CAC 40 up around +0.8%. EUR/USD has traded a little firmer during the Asian session, underpinned by strong buying of the EUR/CHF cross as speculation grows that franc will soon be pegged to euro. We’re up at 1.4295 from a North American close Friday down around [...]

EUR/CHF on a 1.1200 handle!! Who wud have thunk it? Posted: Well that didn’t take long. I’m too good for this place ;)

ForexLive Asian market wrap: CHF falls by 2% on SNB reports Posted: Swiss newspapers reports that SNB plans are ready to put a lower limit on EUR/CHF German press reports suggest that the German government is no longer ruling out joint EU bonds though the FinMin and EconMin still seem to be opposing such a move Japan June real GDP -0.3% QoQ (-0.7% expected) Japan June CapEx [...]

Germany must defend the Euro Posted: Opinion piece on Reuters from George Soros.

Around the markets Posted: Regional stockmarkets are around 1.5% higher, Gold has rebounded from earlier loses to be unchanged near $1745/oz and oil is trading at $85.40, also unchanged. The only FX action is in the CHF, which is nearly 2% lower against all other major currencies so far today.