Much worse than expected reading of 4.0

June current conditions index 33.2 from 44.1 in May  (exp 39.8)

Reuters headline.

Apparently there are still some outstanding issues between political leaders.

These comments seem to contradict one’s out earlier over Bloomberg.

As with all things Greece,  nothing’s ever simple……

Raised 3.04 bln euros of 3.0 bln target in latest auctions.

Strong cover, crap yields (but we knew that was going to be the case, didn’t we?)

EUR/USD sits at 1.2582 from session 1.2569.

UK clearer, with strong Far Eastern ties, said to have been notable buyer around the lows.

-Apr SA House Prices +1.1% m/m; +1.4% y/y

LONDON (MNI) – House prices rose on the month in April at their
fastest pace for more than a year, figures from National Statistics
showed Tuesday.

House prices rose a seasonally adjusted 1.1% on the month in April
and were up 1.4% on the year. This was the largest monthly rise since
March 2011.

The data showed a deep market split, however, with prices paid by
first time buyers falling 1.8% on the month, while prices for former
owner occupiers rose 2.3%.

-London bureau: 0044 20 7862 7491; email: puglow@marketnews.com

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

-May CPI -0.1% m/m; +2.8% y/y vs Apr 3.0% y/y; Below Median Forecast

LONDON (MNI) – Consumer price inflation continued to fall in May,
hitting its lowest level for more than two years, pushed down by food
and petrol prices, figures released by National Statistics showed
Tuesday.

These figures mark the second month in a row in which the CPI has
come in under expectations and strongly suggest that inflation in the
second quarter will undershoot the BOE’s latest forecast. This is just
another factor that will help to persuade the Monetary Policy Committee
to vote for further Quantitative Easing at the July meeting.

Consumer prices fell 0.1% on the month in May and were up 2.8% on
the year, down from 3% in April. This was the first ever recorded fall
in the index between April and May and the lowest rate of inflation
since November 2009.

Analysts had forecast a 0.3% monthly rise in the CPI and no change
in the annual rate of 3%.

As expected, petrol prices had a significant downward impact with
petrol prices falling by 4.5 pence per litre during the month. There was
also downward pressure on the annual rate from food and non-alcoholic
beverages where prices rose 0.2% on the month this year, compared with a
rise of 1.3% in May 2011.

There have been concerns among some MPC members about just how
fast CPI inflation would fall and whether it would decline quite as
quickly and as much as the forecast in recent Inflation Reports.

This release shows inflation moving quite quickly downwards and
base effects should help it to decline further over the coming months.

In the May Inflation Report the BOE forecast inflation to ease to
3.19% in Q2 before falling to 2.93% by Q4.

-London bureau: 0044 20 7862 7491; email: puglow@marketnews.com

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

UK DATA: Apr SA House Prices +1.1% m/m; +1.4% y/y
————————————————————————
House prices rose on the month in April at their fastest pace for
more than a year, figures from National Statistics showed Tuesday. House
prices rose a seasonally adjusted 1.1% on the month in April and were up
1.4% on the year. This was the largest monthly rise since March 2011.
The data showed a deep market split, however, with prices paid by first
time buyers falling 1.8% on the month, while prices for former owner
occupiers rose 2.3%.

UK DATA: May CPI -0.1% m/m; +2.8% y/y vs Apr 3.0% y/y; Below Median
————————————————————————
CPI inflation continued to fall in May, hitting its lowest level
for more than two years, pushed down by food and petrol prices. These
figures are the 2nd consecutive month where CPI has come in under
expectations and strongly suggest that Q2 inflation will undershoot the
BOE’s latest forecast. This is just another factor that will help to
persuade the Monetary Policy Committee to vote for further Quantitative
Easing at the July meeting. Consumer prices fell 0.1% on the month in
May and was were up 2.8% on the year, down from 3% in April. This was
the first ever recorded fall in the index between April and May and the
lowest rate of inflation since November 2009. Analysts had forecast a
0.3% monthly rise in the CPI and no change in the annual rate of 3%. As
expected, petrol prices had a significant downward impact with petrol
prices falling by 4.5 pence per litre during the month.

Down from April and expectations of 3.0%, lowest since Dec 2009

RPI unchanged m/m but slips to +3.1% y/y (expected +3.3%), lowest  since Dec 2009

Food and fuel largely behind the fall- ONS

Cable’s slipped again to fresh week’s lows around 1.5620 before bouncing…

Expectations are for a reading of 3% unchanged on  y/y, but EUR/USD weakness is dragging the pair down with a recent session low of  1.5640. Some nearby support is expected towards yesterday’s 1.5635 lows. Offers remain up at 1.5700/10

Cable’s presently trading around 1.5650 ahead of the release

Bloomberg headline.

Spain EconMin declines to comment on bank audit plans.

Official says its possible that an agreement on a coalition government could be reached in the next few hours.

Kouvelis said ”agreement on a policy roadmap is the definitive point to form a government” adding “the process is speeding up. It is possible that in the next few hours, or within the day, a government can be decided.”

Reuters headline ..

 EUR/USD, heading down to test Asian session lows around 1.2575

• Greek election result will allow “swifter arrangements” if it makes own aid request
• Financing to recapitalise its banks is its priority, says issue is urgent, and does not exclude EFSF with right conditions

We’re at 1.2607 having been as low as 1.2588.

Guess who’s been buying into the dip? And you really should know the answer by now.

Sell orders clustered 1.2630/50.  Some conflicting reports as to where buy stops gathering.  Reports have them through both 1.2650 and 1.2655.  But as I always say, what’s 5 pips between friends

Not a very inspiring start to the morning session in Europe with a  1.0115-38 range since i parked my backside down at 0500am.

AUD/USD’s getting some support from ongoing EUR/AUD sales and there’s been some talk in Asia that this could be related to some Central bank diversification  but i can’t confirm it. The RBA minutes overnight have also lent some support, but we seem to be going nowhere just for the moment.

Offers sit up from 1.0140 up to 1.0170, with stops above . Bids start from 1.0100/10 and are layered down to 1.0080, with sell stops on abreak .

All in all a bit like watching paint dry this morning, or should i say like the seagull poop that’s landed on my clean car this morning. Don’t you just love em….!

FRANCE DATA: June mfg sentiment 92 vs May 93
– As expected; MNI analysts survey median forecast 92
– Execs’ own-company outlook -4 vs May -4
– Sector production outlook -30 vs May -28 (-29)
– See MNI MainWire for details

From unrevised 93 in May, in line with Reuter’s median forecast.

As we reached our 1.2600 lower parameter yesterday, I guess it’s time for another poll.

We sit at 1.2590 in EUR/USD.

What’ll we see first, 1.2500 or 1.2700?

Reasoning/s for choice always welcome, but not obligatory.

Love him or loathe him, latest from AEP at The Telegraph