Some fairly sizeable bids were reported in the 1.1800/10  area , but these have now been filled (with a bit of assistance from a EUR/USD collapse- China apparently the main seller).

 Below here there should be some daily trendline support coming in around 1.1760 and 1.1725, depending on where you’re drawing your line, but the die does seem to be  cast on this pair especially with a market that’s  got the bit between its teeth and amid talk that  the BUBA is going to add ozzie assets in Q3

EUR/AUD’s just off the new lows of 1.1792

In recent trade.

We’re back at 1.0403 from session high 1.0417.

As mentioned earlier by Pete sell orders remain up at 1.0420. Seemingly early protection of 1.0450 barrier option interest.

We’re back down at 1.2278.  Talk China has been notable seller.

Meanwhile Spain raised 2.981 bln in this morning’s auctions vs target 3 bln.

2 year average yield 5.204% vs previous 4.335%

5 year average yield 6.459% vs previous 6.072%

7 year average yield 6.701% vs previous 4.832%

The 10 year govt bond yield has moved through 7% presently at 7.02%

To compound the horribly high rates paid, the cover was also weaker than previous auctions.

-Jun Retail Sales +0.1% m/m; +1.6% y/y; median +1.1% m/m; +2.4% y/y
-Jun Retail Sales ex fuel +0.3% m/m; 2.2% y/y; median +1% m/m; +2.4% y/y

LONDON (MNI) – Headline retail sales were virtually unchanged on
the month in June, dampened by poor barbecue food sales as the UK saw
the wettest June since 1910, figures released from National Statistics
showed Thursday.

Strip out the poor weather and sales would have risen during the
month, as non-food sales rose firmly. While this points to underlying
sales being stronger than the headline data suggest other factors make
gauging the sector’s underlying strength difficult, with the fall
in volumes over the quarter the largest for two years.

National Statistics said there was no evidence that the Jubilee had
any significant impact on sales and it was “clutching at straws” to try
and find any sign of a postive impact in the data. The previous Jubilee,
the Golden Jubilee in 2002, also had no discernible upward effect on
sales.

Retail sales volumes rose 0.1% on the month in June and were up
1.6% on the year, below the median forecast for increases of 0.5% and
2.3% respectively. Retail sales ex auto fuel retail sales were up 0.3%
on the month and by 2.2% on the year

Sales at predominantly food stores fell 0.7% on the month, with
National Statistics reporting that retailers had said that the poor
weather had hit sales of barbecue food items. This tallies with the
Consumer Prices data which showed meat prices having a significant down
impact on overall inflation in June.

Without a fall in food then sales overall sales would have risen,
as non-food sales rose 1.2% on the month, with all categories posting
increases on the month.

Part of this non-food strength, however, may prove to be a one-off
and reversed next month as evidence suggests retailers brought forward
their usual summer sales from July. The price deflator ex fuel fell to
0.6% from 1.3%, the lowest since November 2009.

Notable, clothing and footwear sales rose 2.5% on the month, with
the price deflator in this sector turning negative for the first time
since August 2010, declining to -0.3% from 1.7% in May.

Sales at other stores rose a healthy 1.4% while non-specialised
sales and household goods store sales were up 0.2% and 0.3%
respectively.

The trend in sales remains weak, with sales in Q2 down 0.7% on the
quarter compared with Q1, the weakest three monthly growth since March
2010. This will pull down GDP growth over the quarter.

-London bureau: +44 20 7862 7491; email: puglow@marketnews.com

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

UK DATA: Jun Retail Sales +0.1% m/m; +1.6% y/y; median 1.1% m/m;2.4% y/y
-Jun Retail Sales ex fuel +0.3% m/m; 2.2% y/y; median +1% m/m; +2.4% y/y
————————————————————————
Headline retail sales were virtually unchanged on the month in
June, dampened by poor barbecue food sales as the UK saw the wettest
June since 1910. Strip out the poor weather and sales would have
risen during the month, as non-food sales rose firmly. While this may
point to underlying sales being stronger than the headline data suggest
other factors make gauging underlying strength in the sector
difficult. Moreover the fall in volumes over the quarter was the largest
for two years. Strength in non-food sales which rose 1.2% m/m may prove
to be a one-off and reversed next month as evidence suggests retailers
brought forward their usual summer sales from July. The price deflator
ex fuel fell to 0.6% from 1.3%, the lowest since November 2009.

Weaker than median forecasts +0.6%, +0.4% respectively.

Rain hits food sales. Go figure.

Cable slips on data, presently down at 1.5656.

FRANKFURT (MNI) – Banks in Norway are expected to tighten credit
standards for businesses in the third quarter while keeping terms
broadly unchanged for households, according to the Norges Bank’s bank
lending survey released Thursday.

In the second quarter, banks reported somewhat tighter credit
standards for enterprises. For households, terms were tightened for
first-home mortgages, while overall credit standards remained broadly
unchanged.

Looking at the demand side, the central bank said that “both
household and corporate credit demand increased slightly” in the second
quarter and is expected to remain broadly unchanged in the third
quarter.

The survey was conducted from June 29 to July 10.

–Frankfurt: +49 69 720 142, jtreeck@marketnews.com

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

so far hearing the following..

EUR/USD: 1.2150

USD/JPY: 78.25, 78.00

EUR/JPY: 96.00, 95.50

EUR/GBP: 0.7825, 0.7800

USD/CHF: 0.9900, 0.9950 and 1.0000

AUD/USD 1.0450

ITALY DATA: May SA ind orders +1.7% m/m as domestic and foreign
orders grew, after falling 1.8% m/m in April, ISTAT said.
- On the year, unadjusted industrial orders fell 9.4%, up from -12.3%
y/y in April and a 3-year low of -14.3% y/y in March.
- May SA m/m domestic orders +1.6%; foreign orders +2.0% m/m
- May SA turnover: -0.5% m/m; workday adjusted -2.7% y/y

EMU DATA: May direct+portfolio inflow E38.9bn; April outflow E8.3bn
– EMU May direct invest inflow E10.6bn; April outflow E9.6bn
– EMU May portfolio invest inflow E28.3bn; April inflow E1.3bn
– EMU May equity invest inflow E3.2bn; April outflow E15.8bn
– EMU May bond/note invest inflow E17.7bn; April inflow E3.1bn
– EMU May money mkt invest inflow E7.4bn; April inflow E14.0bn
– EMU May sa current acct +E10.9bn; April +E5.5bn(+E4.6bn)
– EMU May sa goods trade bal.+E8.9bn; April +E6.9bn(+E7.5bn)
– EMU May nsa current acct -E2.5bn; April +E1.3bn(+E1.6bn)
– See MNI MainWire for details

Talk of semi-official bids (Kampo)  soaking up the earlier sales from Japanese trust banks in Asia, but the 78.50 barrier was flushed out earlier to a low of 78.46. There’s some talk of sell stops just below 78.45, but also of another couple of barriers down at 78.25 and 78.00.

Either way it all looks a bit of a grind lower as the trio of  trust banks, exporters and some hedge funds battle it out with the BOJ/MOF….

USD/JPY’s sitting around 78.60

Looking to raise 2-3 bln euros over 2,5 and 7 years.

Results due around 08:40 GMT.

Comes at a time when Spanish govt bond yields have been ticking back higher. 10 year is at 6.90%, within shouting distance of the psychological  7% level.

UP from -40 in June.

That’s the good news.

The bad news, June adjusted unemployment up at 6.3% from 6.2% in May.

Usual story in these current markets , but hearing talk of another barrier up at 1.0450 with offers ahead of it starting from around 1.0420 which was the May high.

AUD’s just off the current day’s high of 1.0415

Hooray…….

Barrier option interest at 1.0400 in AUD/USD is confined to the annals of history.

We’ve been as high as 1.0406, presently 1.0398,

-Adds Comments By Deputy Finance Minister To Story Sent At 06:12 GMT

BERLIN (MNI) – Germany’s largest opposition party, the center-left
SPD, on Thursday signaled that it would vote today in the Bundestag
with the government for the European aid to the Spanish banking sector.

“Spain needs aid to rescue its banks,” SPD parliamentary whip
Thomas Oppermann told German ARD public television. “It is also in our
interest that these banks be stabilised.”

Oppermann stressed that Madrid will be fully liable for the
financial aid from its Eurozone peers. “There cannot be any direct aid
for banks,” he made clear.

The parliamentary budget speaker of the ecologist Greens, Priska
Hinz, said on Wednesday that her party in principle also supported the
aid for Spain’s banking sector but some questions still needed to be
answered by the government.

“There will be a broad majority today” for the aid measures, Deputy
Finance Minister Steffen Kampeter told ARD television today. He also
underlined that “Spain will be liable” for the fiscal aid.

Chancellor Angela Merkel’s center-right CDU/CSU-FDP coalition
controls a majority of her own in the lower house and in principle does
not depend on the support of the opposition. But in previous votes some
members of her coalition had voted against fiscal aid measures for
ailing Eurozone states.

The opposition-controlled upper house, the Bundesrat representing
the 16 states, will not get to vote on the bill.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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

EUR/USD:  Offers 1.2300/10 (talk semi-official, Dutch names), and stronger offers up at 1.2340/50 with buy stops above. Bids 1.2250/60, some  sell stops in 1.2230 and more bids 1.2200/10, sell stops below, ahead of bids 1.2150/60 (1.2150 barrier)

GBP/USD:  Bids 1.5620/30, 1.5580/00, offers 1.5665/85 (1.5674- 55 day MA), tech res 1.5720/25

EUR/GBP:   Bids 0.7830/40, ahead of barriers 0.7825 and 0.7800.  Likely sell stops below each. Offers 0.7865/75 and 0.7900/10

USD/JPY: Bids 78.45/55 sell stops below, more bids 78.25/35 (78.25 barrier) and 78.00/10 (78.00 barrier) sell stops below. Offers 79.00/20(200 day MA 79.06), buy stops through 79.25 ahead of tech res/offers 79.40/50 (79.45- 55 day MA)

EUR/JPY:   Offers 96.90/00 and tech res 97.30/40, bids 96.25/35, 96.00/10, sell stops below ahead of larger bids down at 95.55/65 with more sell stops through 95.50

AUD/JPY:  Bids 81.25/35 and 81.00/10, likely sell stops below through 80.90. Offers 81.70/80, tech res 82.30/40, possible buy stops above

EUR/CHF: Bids 1.2000/10(SNB), Offers 1.2025/50 buy stops through 1.2055

USD/CHF: Offers 0.9800/10, bids 0.9750/60 and from 0.9730 down to 0.9700

AUD/USD: Good offers 1.0390/00(talk of 1.0400 barrier) buy stops above. Bids 1.0350/60, sell stops through 1.0340 ahead of more bids 1.0300/10

EUR/AUD:  Strong bids 1.1800/20, offers 1.1850/60

NZD/USD: tech res 0.8040/50 and 0.8070/75, Bids 0.7980/90, tech supp 0.7960 (200 day MA) stronger supp 0.7915/25

BERLIN (MNI) – Germany’s largest opposition party, the center-left
SPD, on Thursday signaled that it will vote today in the Bundestag with
the government for the European aid to the Spanish banking sector.

“Spain needs aid to rescue its banks,” SPD parliamentary whip
Thomas Oppermann told German ARD public television. “It is also in our
interest that these banks be stabilised.”

Oppermann stressed that Madrid will be fully liable for the
financial aid from its Eurozone peers. “There cannot be any direct aid
for banks,” he made clear.

The parliamentary budget speaker of the ecologist Greens, Priska
Hinz, said on Wednesday that her party in principle also supported the
aid for Spain’s banking sector but some questions still needed to be
answered by the government.

Chancellor Angela Merkel’s center-right CDU/CSU-FDP coalition
controls a majority of her own in the lower house and in principle does
not depend on the support of the opposition. But in previous votes some
members of her coalition had voted against fiscal aid measures for
ailing Eurozone states.

The opposition-controlled upper house, the Bundesrat representing
the 16 states, will not get to vote on the bill.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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

– Japan Department Store Sales Fall for Second Month In A Row

TOKYO (MNI) – Department store sales in Japan fell 1.2% in June,
the second consecutive monthly drop, held down by bad weather
conditions, data released by the Japan Department Stores Association
showed on Thursday.

The June decrease followed -1.0% in May and +1.3% in April.

Poor weather conditions — including as heavy rain, low
temperatures and a typhoon — kept shoppers away from the stores, the
association said.

But demand for jewelry and other luxury goods remained firm, rising
3.1% on year.

Department store ales for the April-June quarter inched down 0.3%
y/y, compared to +4.0% in January-March, the association said.

The association compiles data from 86 companies running 249
department stores that have been open for at least a year prior to the
survey being conducted. The data are adjusted to facilitate comparisons
on a same-store basis.

In Tokyo, combined sales at 26 department stores fell 0.1% on year
in June, the first fall in four months, after +2.1% in May.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4835 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]