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EURUSD dropped to 2 year lows in Asia today

Monday, July 9, 2012 3:37 AM GMT

Good Morning ,

- EURUSD dropped to 2 year lows in Asia today (low 1.2252), Risk currencies
are trading weaker across the board. European Finance Minister will meet
in Brussels today and the German Constitutional Court will rule on a motion
to stop ESM tomorrow.

- Stocks: Nikkei -1.21 %, Hang Seng -1.47 %, Shanghai Composite -1.22 %,
Dow Jone -0.96 %, S+P500 -0.94 %

- Italian Prime Minister Mario Monti said that the current level of yield
spreads on European sovereign debt remains a concern and that the Eurogrup of
finance ministers should act to counter them.

- Bank of Italy Governor Ignazio Visco said Italy needs to insist in spending
cuts and needs to boost investments to foster economic growth, in an
interview with Corriere della Sera today.

- ECB Asmussen said the European Stability Mechanism shouldn't have a banking
license or tap the ECB directly, in an interview with Italian daily La Stampa.
Asmussen said he expects a single European banking union will take effect in
2013, the newspaper reported. Until then, Spain will have to tap current
European bailout funds, with a temporary increase to its debt level, Asmussen
added. Italy is on the right track and needs to boost its economic growth,
Asmussen said.

- The European Central Bank sees no need for further non-standard measures to
support the economy or counter the debt crisis at present, executive board
member Benoit Coeure said.

- Greek Prime Minister Antonis Samaras won a vote of confidence in his
government, setting the stage for a showdown with the European Union over
easing the terms of its bailout. However the story was later denied by both
governments.

- German Finance Minister Wolfgang Schaeuble and French Finance Minister Pierre
Moscovici will share the chairmanship of the group of euro finance chiefs as
Luxembourg Prime Minister Jean-Claude Juncker steps down, Der Spiegel
newspaper reported.

- Federal Reserve Bank of Boston President Eric Rosengren said a struggling
U.S. labor market threatens to slow household spending as Europe's fiscal
crisis adds to uncertainty that's restraining hiring and investment.

- Chinese Premier Wen Jiabao called for more aggressive efforts to "preset and
fine-tune" economic policies, the official Xinhua News Agency reported.
* Economy is running at a generally stable pace although there is still huge
pressure for it to go downward
* Government should stick to proactive fiscal policies and prudent monetary
policies
* Much attention should be paid to improving structural tax reduction
measures

- The SNB should defend its 1.20 francs per euro limit as the pressure on the
Swiss currency to appreciate will increase, Economy Minister Schneider-Ammann
told SonntagsZeitung newspaper. He doesn't expect the SNB to lower the limit,
the minister said. Schneider-Ammann said that he is skeptical about the
introduction of negative interest rates to prevent the franc from
appreciating as experience shows that those measures aren't effective. Still,
the Swiss government is examining the possibility, the minister told the
newspaper.

- IMM Positions: EUR -160k vs -141k, JPY 5k vs 15k, GBP -1k vs -17k, CHF -24k
vs -7k, CAD 9k vs 8k, AUD -2k vs -4k, NZD 1k vs -2k

- 2100 US Consumer Credit May
- 1755 Fed Williams
- 0800 Germany Trade Balance May
- 0800 Germany Current Account May
- 0830 Banque De France Business Sentiment June
- 1030 Eurozone Sentix invest Confidence July
- 0930 ECB Nowotny
- 1430 ECB Draghi
- 1900 ECB Nowotny
- n/a Ecofin Meeting in Brussels (09-10 July)
- 1730 BOE Tucker
- 1930 BOE Posen
- 0745 Switzerland Unemployment Rate June
- 1630 Canada Business Outlook Future Sales Q2
- 1630 Canada BOC Senior Loan Officer Survey

(CET)

Have a good start !

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