US name is appearently behind the push to day’s lows of 0.7999. Initial support just below now at 0.7995,  and 0.7970/80 ( lows of end of May)

EUR/GBP’s around 0.7998

“Very complex”……………………..ain’t it always.

Spanish and Italian government bond yields have been climbing, helping undermine the single currency.

We’re back below 1.2500, presently at 1.2490.

Buy orders clustered 1.2470/80, sell stops below there and more through 1.2440.

The cross looks  heavy again with a break this morning down through tech supp 1.2470 (61.8% of this year's rally)  and bids  in the 1.2450/60 zone.  

Some tech support at the 1.2430/35 level before a test of the  1.2400 level , where likely sell stops will be placed

EUR/AUD’s around day’s lows of 1.2444 with AUD/USD holding around 1.0038

LUXEMBOURG (MNI) – The Eurozone could expedite efforts for deeper
integration should the crisis get worse over the coming months, Belgium
Deputy Prime Minister and Minister of Foreign Affairs Didier Reynders
told reporters ahead of a meeting of foreign ministers intended to
prepare for the EU summit later this week.

At the summit on Thursday and Friday, the EU leaders will discuss a
plan for deeper European integration that was prepared by President of
the European Council Hermann van Rompuy, President of the European
Commission Jose Manuel Barroso, Eurogroup head Jean-Claude Juncker and
European Central Bank President Mario Draghi.

The so-called roadmap “may be for the medium term…except if we
have a huge crisis in the next months,” Reynders said. In either event,
Reynders said he hopes a decision will be taken “before the summer.”

The Council of the European Union distributed a draft proposal for
the roadmap to ministers early this morning. A German official earlier
on Thursday criticised the report, saying it put too much emphasis on
debt materialization while neglecting to address the need for effective
governance rules.

Reynders described the proposal as “a starting point for a real
federal Europe” and said that in conjunction with continued fiscal
adjustment it should convince financial markets.

As Europe moves forward it does not only need a banking union,
Reynders said. “We also need to go further in the integration of
budgetary policy – a better capacity for the European Union to manage
national budgets if it is needed.” A third element needs to be “a better
common policy on social tax issues for sustainable growth,” Reynders
said.

–Frankfurt newsroom +49 69 72 01 42; e-mail jtreeck@marketnews.com

[TOPICS: MT$$$$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]

Can anyone tell me the session high for EUR/USD? Yer right…..

To my detractors (of which there are many):  you can all go kiss my big fat hairy arse

UPDATE:   EUR/USD back down at 1.2505 from session high…………1.2530

UPDATE:  It’s a gift. What can I tell ya

-UK May PSNB-X Stg17.943bn vs stg15.195bn in May 2011

LONDON (MNI) – The UK public finances are looking less healthy this
May than they were a year ago, with public sector net borrowing rising
and increasing more rapidly than analysts had forecast.

Public sector net borrowing excluding financial interventions
(PSNB-X) rose to Stg17.943 billion in May from Stg15.195 billion in May
2011, exceeding analysts’ expectations for an unchanged outturn. The
April PSNB-X data were flattered by the inclusion of the Royal Mail
pension fund but these May figures showing borrowing rising.

This was the largest PSNB-X outturn since March 2011.

Net debt rose in May to 65% of GDP from 61.3% in May last year. The
current budget deficit stood at -Stg14.46 billion, compared to
-Stg11.347 billion a year ago.

Public sector net borrowing rose to Stg15.58 billion from Stg12.326
billion in May 2011.

Receipts growth weakened, with income tax receipts down 1% in the
fiscal year to May on a year ago and corporation tax receipts down 8.2%
on the same basis, perhaps reflecting continued economic softness.

Total receipts were down 3.6% on a year ago, with total outlays
down 14.2%.

–London bureau: 0044 20 7862 7491; email: drobinson@marketnews.com

[TOPICS: M$B$$$,MABDS$]

UK DATA: May PSNB-X Stg17.943bn vs stg15.195bn in May 2011
-UK May CGNCR Stg13.273bn vs stg10.7724bn in May 2011
-UK May PSNB Stg15.58bn vs stg12.326bn in May 2011
-UK May Current Budget-x -stg6.896bn vs -stg14.216bn in May’11
-UK May PSNB-X Largest since March 2011
-UK May PSNB-X Larger than analysts median forecasts
————————————————————————
The UK public finances are looking less healthy this
May than they were a year ago, with public sector net borrowing rising
and increasing more rapidly than analysts had forecast.

Sharply up from £12.326 bln in May 2011 and market expectations

 PSNB ex fin sector  £17.943 bln (exp 14.8bln) from £15.195 bln in May 2011

LUXEMBOURG (MNI) – The draft roadmap for Europe is too focused on
debt mutualization and falls short on improved governance, German
Minister of State at the Foreign Office, Michael Link, said Tuesday.

“In part, it reads like a wish list for debt mutualization, more
towards [mutualization] of new debt rather than old debt,” Link told
reporters, ahead of a meeting of foreign ministers preparing the EU
summit later this week. “Where it falls very short, is in the area of
control, the improved governance in the Eurozone.”

“We remain unconvinced that this is a sensible way out of the
crisis,” he said.

Link said the crisis has shown that improved rules and governance
are needed to prevent future crises in the Eurozone.

Link stressed that this is “just a first assessment” of the roadmap
– drafted by European Central Bank President Mario Draghi, EU Council
President Herman Van Rompuy, European Commission President Jose Manuel
Barroso and Eurogroup head Jean-Claude Juncker — and, while important,
the draft was not a document that required a decision at this point.

– Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com

[TOPICS: M$G$$$,M$X$$$,MGX$$$,M$$CR$]

ITALY DATA: April retail sales fell 1.6% m/m in SA nominal terms,
posting the second monthly decline as both food and non-food sales
dropped. In y/y terms, retails sales slumped a record 6.8%, down from an
annual rise of 1.5% in March 2012. –The three month-moving average
advanced 0.2% in the months from February to April, compared with the
previous 3 months. –Food sales fell 1.5% m/m and decreased 0.2% y/y;
non-food sales also declined 1.5% m/m and contracted by 2.2% on the
year.

Monthly fall steepest since May 2004.

Y/Y fall steepest fall since start of series in January 2001 

EUR/USD holding up relatively well despite grotty Italian data, presently at 1.2520.

Sell orders clustered 1.2540/50, buy stops through 1.2555.

GBP/USD’s  just poked up through 1.5600 to a week’s high of 1.5623. There are now some reported buy stops through 1.5635

The BOE’s governor,  Dale , Miles and Broadbent are all speaking at the Treasury select committee in an hour

Cable’s currently sitting around 1.5621

• Common euro zone debt issuance would require “robust framework of budget discipline and competitiveness” to be in place first
• Full fiscal union in EU would imply creation of a unified euro zone fiscal body such as a treasury office
• As well as common debt issuance, different forms of “fiscal solidarity” could also be considered
• Next steps towards EU banking and fiscal union will come in a report in December, with interim report in October

Reuters reporting.

–Corrects The Spelling Of The Minister’s Name, Which Is Carl Bildt

LUXEMBOURG (MNI) – Europe needs time for s profound debate on
deeper integration, and that process should not be rushed, Swedish
foreign minister Carl Bildt said on Tuesday.

He noted that while the Eurozone’s debt crisis has “urgent short
term issues” that need to be dealt with, discussions on a roadmap for
deeper financial integration and banking union, by contrast, are “very
long term.”

Europe has a “democratic decision-making process that needs to be
respected,” Bildt said. “Sometimes decisions have been taken too fast.”

EU foreign ministers are meeting in Luxembourg Tuesday to prepare
the discussion for EU leaders on a report outlining steps to deepen
financial and fiscal integration in the EU, including more
centralisation of powers at the European level. Political leaders hope
such steps will reassure markets that the Eurozone is addressing its
structural weaknesses.

EU leaders will discuss the ideas when they meet in Brussels this
Thursday and Friday.

–Brussels Newsroom, +324-952-28374; pkoh@marketnews.com

[TOPICS: M$X$$$,MGX$$$,M$$CR$]

LUXEMBOURG (MNI) – Europe needs time for s profound debate on
deeper integration, and that process should not be rushed, Swedish
foreign minister Karl Bild said on Tuesday.

He noted that while the Eurozone’s debt crisis has “urgent short
term issues” that need to be dealt with, discussions on a roadmap for
deeper financial integration and banking union, by contrast, are “very
long term.”

Europe has a “democratic decision-making process that needs to be
respected,” Bild said. “Sometimes decisions have been taken too fast.”

EU foreign ministers are meeting in Luxembourg Tuesday to prepare
the discussion for EU leaders on a report outlining steps to deepen
financial and fiscal integration in the EU, including more
centralisation of powers at the European level. Political leaders hope
such steps will reassure markets that the Eurozone is addressing its
structural weaknesses.

EU leaders will discuss the ideas when they meet in Brussels this
Thursday and Friday.

–Brussels Newsroom, +324-952-28374; pkoh@marketnews.com

[TOPICS: M$X$$$,MGX$$$,M$$CR$]

Pushing up from early lows around  parity in Asia with some buy stops close by now through 1.0055. Above here there is some tech res just ahead of 1.0070 ( 1.0069- 55 day MA) and more reported stops up through 1.0080

Bids are now siitting down at 1.0000/10 from sovereigns, corporates and real money names

AUD’s at session highs around 1.0043

EUR/USD sits at 1.2500, where it was when I turned in.

Sovereign buy interest noted down at 1.2470/80 of late, while hedge fund sell interest noted circa 1.2520.

Let’s keep it 1.2470-1.2530 for the remainder of the morning, that’ll do me.

Summertime and the living is easy, fish are jumpin and the cotton is high…..

Anyone for tennis?

• Government needs 7-10 bln euros for 2012 budget
• 3% tax on dividends to kick in this Summer
• To raise tax on financial transactions to 0.2%
• To scrap tax breaks on extra hours worked

Unchanged from 90 in May and slightly stronger than Reuter’s median forecast of 89.

EUR/USD sits at 1.2505, busy going nowehere in particular

FRANCE DATA: June consumer morale 90; May 90
– Above expected; MNI analysts survey median forecast 89
– Buying-propensity up three points
– Future inflation worries unchanged
– Jobless fears up 11 points
– See MNI MainWire for details