Google Analytics

Tuesday, June 2

2nd Jun - EURUSD spikes on inflation

Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter

The economics of parallel currenciesBruegel
As Greece faces a severe shortage of euros, the idea of introducing a parallel currency used for some domestic transactions – while keeping the euro in place for existing bank deposits and for foreign transactions – has made a comeback.  Although historical examples of parallel currencies exist, the analysis of the idea remains in its infancy. It remains unclear whether and how one could find the right mechanics.

How to Default on Sovereign DebtProject Syndicate
The financial brinkmanship over Greece’s debts has raised the question of whether (or when) the country will default on its sovereign debt. As Greek officials consider their options, they would do well to bear in mind that there are better and worse ways to default.

Merkel pushes for Greek deal ahead of G7 – Politico
Greek bailout monitors hold emergency summit – FT
Getting serious about Greek debt woes – FT
Frances Coppola: The European War Of Words – Forbes
What Happens if Greece Defaults on IMF Payments? – WSJ
Greece, creditors line up rival reform proposals to unlock aid – Reuters
Dueling Plans Drafted to End Greek Standoff – BB

Negative rates turn eurozone’s banking topsy-turvy – FT
5 Points to Watch in the ECB’s June Presser – WSJ

Press release on the Survey – ECB
Survey on the access to finance of enterprises in EZ Oct 14-Mar 15 – ECB
Smaller Firms Start to Feel the Impact of ECB Stimulus – WSJ
ECB study highlights credit crunch for Greek companies – Reuters

Spanish unemployment declines by 118,000 in May – TF
Euro area annual inflation up to 0.3% - Eurostat
Euro-area core inflation jumped - headline to follow in Q4 – Danske Bank
Goodbye zero inflation - and thanks – Nordea
Euro zone back to inflation as May prices beat forecast – Reuters
Industrial producer prices down by 0.1% in euro area – Eurostat

Factory Orders Scream Recession, Drop 6% From Year Ago In Sixth Consecutive Drop – ZH
US factory order drop more than expected – TF
U.S. factory orders decline, demand broadly soft – Reuters
U.S. May auto sales race to strongest pace in nearly decade – Reuters

Australia Holds Rates At Record Low, Omits Easing BiasWSJ

Daily Central BanksWSJ
Hilsenrath’s Take: A Letter to Stingy American Consumers * Glut of Chinese Goods Pinches Global Economy * Rosengren: Not the Time to Raise Rates * Creditors Prepare ‘Final’ Text of Greek Bailout Deal * India’s Central Bank Cuts Key Interest Rate Again

Morning MoneyBeat AsiaWSJ
Morning MoneyBeat EuropeWSJ
Morning MoneyBeat USWSJ

Danske DailyDanske Bank

Euro rates updateNordea

EUR weaker, yields up, ECB frontloading * Euro-area inflation to rise * ECB QE numbers show frontloading * EUR/NOK takes a dive

Morning MarketsTF
AUDUSD has extended beyond 0.7670 after the Reserve Bank of Australia left rates on hold at 2%, but downside may resume if US data supports the greenback through the rest of this week.

Daily FX CommentMarc Chandler
Dollar Lower as Turn Around Tuesday Unfolds

Daily Press SummaryOpen Europe
Greek creditors hold emergency late night meeting in Berlin * France and Germany urge Commission to reconsider refugee quota proposal * Poland’s governing party falls to third place in new poll * New data show Germany’s birth rate has fallen to lowest in the world

Brussels PlaybookPolitico

Futures Slide Then Rebound On Endless "Unnamed Source" Greek Chatter, Dollar Slides; China Surges

FX UpdateTF
The Reserve Bank of Australia was rather downbeat in its statement, but perhaps the lack of explicit rate cut talk saw AUD backing up from its lows against the USD. Elsewhere, USDJPY just managed to touch 125.00 before backing off on uncertainty ahead of the key US data points through the end of this week.

From the FloorTF
The Greek talks head down to the wire with all manner of rumours circulating about their content. Is there a deal? Will Syriza accept it? Will there ever be any resolution to what Saxo FX head John Hardy calls an "incredibly tiresome" situation? Only time (and maybe Twitter) will tell.

Investoinnit Ruotsissa lisääntyvät saman verran kuin ne Suomessa vähenevät | Saksan inflaatio kiihtyi | USA:n teollisuuden luottamus nousi

Vesa Varhee: Viinasen–Ahon jäljilleTalSa
Kolumni Historia näyttää toistavan itseään. Kuten vuonna 1991, Suomi saa verraten kokemattoman keskustalaisen pääministerin, jonka hallitus joutuu siivoamaan kokoomuslaisen pääministerin kabinetin jättämää sotkua. Kukkaron nyörejä pitelee, sosiaalidemokraatin jälkeen, kokoomuslainen valtiovarainministeri. Kuten tuolloinkin, edessä on matokuuri kilpailukykynsä hukanneen talouden tervehdyttämiseksi.