The Greek vote looms Wednesday (expected about 0900GMT) and ahead of that Asia kept currencies confined to tight ranges. On the data front, Japanese preliminary industrial production rose by a faster pace in May, continuing the healthy rebound from March’s 15.5% y/y slump. Predictions on manufacturers' output, the core component of production came in a tad softer; with June's forecast revised down to 5.3% versus a preliminary 7.7% increase and July's output is expected to rise by a mere 0.5%.
Looking ahead, apart from the Greek vote, Europe focuses on UK index of services, consumer credit, money supply and mortgage approvals, EU confidence surveys and Swiss KOF indicator. North America sees the release of Canada’s CPI and house price index along with US pending home sales.
Tuesday, the EUR managed to overcome some early negatives to finish on the up, with a fresh attempt on the key 1.44 level. News of protestors clashing with Greek police and soft data in the form of weak retail sales from Sweden and a mild downward revision to UK Q1 GDP kept the mood subdued before the positives hit. China’s Wen reiterated that they would buy an “appropriate amount” of EU debt, more hawkish comments from ECB’s Trichet (strong vigilance again) and German banks’ apparent willingness to adopt the French proposal for Greek debt rollover all combined to introduce a better tone for risk appetite while news that France’s Lagarde will be the new IMF head from July 5 also helped.
US data was mixed with US house prices, as measured by the S&P/Case-Shiller 20-city index, coming in slightly better than expected at -0.09% m/m but consumer confidence was a disappointment with a dip to 58.5 from 61.7 last. The Richmond Fed manufacturing index defied recent releases with a surprise uptick to +3 from -6 and an expected -3. Wall St had another good day with the DJIA rallying 1.21%, S&P 1.29% and the Nasdaq +1.53%. US yields ticked higher as safe-haven demand waned and supply loomed. The $35 bln 5-year auction went better than yesterday’s 2-year with a bid/cover ratio of 2.59 and a yield of 1.615%. USDJPY found more support as a result and breached the 81.0 mark.
Economic Data Highlights
Looking ahead, apart from the Greek vote, Europe focuses on UK index of services, consumer credit, money supply and mortgage approvals, EU confidence surveys and Swiss KOF indicator. North America sees the release of Canada’s CPI and house price index along with US pending home sales.
Tuesday, the EUR managed to overcome some early negatives to finish on the up, with a fresh attempt on the key 1.44 level. News of protestors clashing with Greek police and soft data in the form of weak retail sales from Sweden and a mild downward revision to UK Q1 GDP kept the mood subdued before the positives hit. China’s Wen reiterated that they would buy an “appropriate amount” of EU debt, more hawkish comments from ECB’s Trichet (strong vigilance again) and German banks’ apparent willingness to adopt the French proposal for Greek debt rollover all combined to introduce a better tone for risk appetite while news that France’s Lagarde will be the new IMF head from July 5 also helped.
US data was mixed with US house prices, as measured by the S&P/Case-Shiller 20-city index, coming in slightly better than expected at -0.09% m/m but consumer confidence was a disappointment with a dip to 58.5 from 61.7 last. The Richmond Fed manufacturing index defied recent releases with a surprise uptick to +3 from -6 and an expected -3. Wall St had another good day with the DJIA rallying 1.21%, S&P 1.29% and the Nasdaq +1.53%. US yields ticked higher as safe-haven demand waned and supply loomed. The $35 bln 5-year auction went better than yesterday’s 2-year with a bid/cover ratio of 2.59 and a yield of 1.615%. USDJPY found more support as a result and breached the 81.0 mark.
Economic Data Highlights
- US Apr. S&P/CaseShiller 20-City Index out at -0.09% m/m vs. -0.2% expected and revised -0.26% prior
- US Jun. Consumer Confidence out at 58.5 vs. 61.0 expected and revised 61.7 prior
- US Jun. Richmond Fed Manufacturing Index out at +3 vs. -3 expected and -6 prior
- JP May Industrial Production out at +5.7% m/m, -5.9% y/y vs. 5.5%/-6.3% expected and 1.6%/-13.6% prior resp.
- AU Jun. DEWR Skilled Vacancies out at -2.0% m/m vs. revised -1.9% prior
Upcoming Economic Calendar Highlights
(All Times GMT)
(All Times GMT)
- Norway Credit Indicator Growth (0800)
- UK Index of Services (0830)
- UK Consumer Credit (0830)
- UK Mortgage Approvals (0830)
- UK M4 Money Supply (0830)
- EU Business Climate Indicator (0900)
- EU Euro-zone Confidence Surveys (0900)
- Swiss KOF Leading Indicator (0930)
- CA CPI (1100)
- US MBA Mortgage Applications (1100)
- CA Teranet/National Bank House Price Index (1300)
- US Pending Home Sales (1400)
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