Euro Softer On Greece

(Reuters) - Gold rose 1 percent on Thursday, snapping three days of losses to climb towards $1,580 an ounce, as the dollar swung back into negative territory versus the euro after a softer-than-expected U.S. manufacturing report. Confidence in the single currency remains fragile after it earlier hit a near two-year low against the dollar. Dire German manufacturing and business climate data spooked investors already weighing up the risk of Greece leaving the euro zone. But gold got a lift from International Monetary Fund data showing another rise in central bank gold holdings in April, after the largest purchase in over four years by the Philippines. Spot gold rose as high as $1,577.50 an ounce and was up 0.8 percent to $1,573.11 an ounce by 9:50 a.m. EDT (1350 GMT), while U.S. gold ...

Major European PMI Manufacturing data misses expectations; German IFO Business Confidence falls for the first time in 7 months Economic Data (RU) Russia Gold & Forex Reserve w/e May 18th: $514.3B v $518.8B prior (DE) Germany Q1 Final GDP Q/Q: 0.5% v 0.5%e; Y/Y: 1.7% v 1.7%e; GDP WDA Y/Y: 1.2% v 1.2%e (DE) Germany Q1 Private Consumption: 0.4% v 0.2%e; Government Spending: 0.2% v 0.3%e; Domestic Demand: -0.3% v 0.0%e; Capital Investment: -1.1% v -0.3%e; Construction Investment: -1.3% v -0.4%e; Exports: 1.7% v 0.9%e; Imports: 0.0% v 0.3%e (CH) Swiss Apr Trade Balance (CHG): 1.3B v 1.9Be; Real Exports M/M: -0.9% v +0.2%e; Real Imports M/M: 2.6% v 5.9% prior (FI) Finland Apr PPI M/M: -0.1% v +0.4% prior; Y/Y: 1.4% v 1.4% prior (FI) Finland Apr Preliminary Retail Sales Volume Y/Y: -2.0% v ...

MORNING BRIEFING: EUR/USD breaches the 1,26 level What’s new: Equity: Asian and US equities remain pressured on Greece and softer Chinese HSBC flash PMI Eurozone: The EU summit wants Greece to stay but no tangible measures as yet Forex: EUR/USD below key support at 1.2650; 1.25 is now eyed Rates in Asia and Indices: EUR/USD 1.2555 1.2599 0.01 % USD/CHF 0.9533 0.9566 0.03 % GBP/USD 1.5668 1.5701 -0.03 % USD/JPY 79.41 79.57 -0.02 % EUR/CHF 1.2009 1.20117 0.00 % EUR/JPY 99.72 100.18 -0.04 % Dow Jones 12311.56 12508.3 -0.05 % Nasdaq 2499.3 2553.19 0.31 % S&P 500 1296.53 1320.71 0. ...

Iran agreed to let western nuclear inspectors into the country during talks in Bagdad today with US, UK, France, China, Russia and Germany, reducing the supply risk and providing some relief. Moreover, the World Bank lowered its economic growth forecast for China, the world`s second-largest oil consumer, this year to 8.2% from 8.4% on sluggish US and European demand and softer property market. Investors are losing their appetite for risk after they were spooked by the mounting worries over Greece exiting the eurozone, which could determine other countries to follow it, according to Jin Liqun chairman of China Investment Corp. European leaders meet in Brussels today where the debate between French President Francois Hollande and German Chancellor Angela Merkel may intensify as the idea ...

Sunrise Market Commentary - Fixed Income: Profit taking continued, but now concluded? - The profit taking on global core bond markets continued in the run-up to tonight's informal EU-Summit. Spanish and Italian spreads decreased significantly but yields remain at elevated levels. Today, the eco calendar is again thin and trading will again be driven by sentiment. - Currencies: Euro rebound short-lived On - Tuesday, the euro came again under pressure even as the global context was not that negative. Sentiment on risk was constructive and intra-EMU spreads narrowed, but all this didn't prevent investors to use any upticks in the single currency to further reduce exposure. The key 1.2642/24 support is again coming within reach. The Sunrise Headlines - In the final hour of ...

Ahead of a meeting of European leaders, the MSCI Asia Pacific Index dropped 1.5% at 12:31 in Tokyo after investors lost their appetite for risk after they were spooked by the mounting worries over Greece exiting the eurozone, while BoJ held its monetary policy unchanged although growth is slowing. Greece’s former Prime Minister Lucas Papademos said yesterday that while it is unlikely that the nation will leave the eurozone, the risks are still high. And if this would prove to be the case, other countries may follow, warned Jin Liqun, chairman of China Investment Corp. Meanwhile, one day after Fitch cut the Japan’s rating by one notch to A-plus from AA with negative outlook, citing “high and rising public debt” burden, Japan showed a slowdown in its exports during April, adding to ...

USD stronger today against most of the majors amid higher global equities and higher U.S. treasury yields. A ratings downgrade in Japan, dampened EU Summit expectations and low growth projections in Europe, and slowing inflation in the UK are benefitting the USD. The dollar index rebounded from the 81.00 figure but remains below the double top around the 81.75 level and the dollar is currently strongest against the JPY as UST yields advance. On the data front, the May Richmond Fed manufacturing index (expected to soften to 11 from 14) and April existing home sales (forecast to increase 2.9% m/m to 4.61M) are set for release at the top of the hour. EUR is weaker against most of the G10 currencies amid growth concerns and low expectations of the upcoming EU Summit. The OECD released update ...

Major currencies are once again trending lower against greenback today after the Organization for Economic Cooperation and Development (OECD) downgraded its growth outlook for the euro area opposed to improvement in the United States. The U.S. economy is expected to strengthen this year and the OECD expects growth of 2.4% and 2.6% this year and next, lifting higher its November forecasts of 2.0% and 2.5% respectively. For the euro area the organization expects 0.1% contraction this year and 0.9% growth in 2013 which is worse than the previous expectations for 0.2% and 1.4% growth respectively. The OECD also downgraded its China growth forecasts to 8.2% and 9.3% this year and next from 8.5% and 9.5% leaving the U.S. economy till now the only with the positive expectations prevailing, ...

Fitch cuts Japan's sovereign rating two notches Economic Data (JP) Japan Apr Supermarket Sales Y/Y: --1.9% v -2.4% prior (FI) Finland Apr Unemployment Rate: 8.4% v 8.4%e (DK) Denmark May Consumer Confidence Indicator: 0.4 v 0.6 prior (ZA) South Africa Mar Leading Indicator: 134.5 v 134.4 prior (NL) Netherlands May Consumer Confidence: -38 v -32 prior (NO) Norway Q1 GDP Q/Q: 1.4% v 0.9%e; GDP Mainland Norway Q/Q: 1.1% v 0.9%e (UK) Mar ONS UK House Prices Y/Y: -0.4% v +1.0% prior (UK) Apr Public Finances (PSNCR): -£23.2B v -£6.0Be; Public Sector Net Borrowing: -£18.8B v -£22.8Be; PSNB ex Interventions: -£16.5B v -£20.0Be (UK) Apr CPI M/M: 0.6% v 0.6%e; Y/Y: 3.0% v 3.1%e; Core CPI Y/Y: 2.1% v 2.0%e (UK) Apr RPI M/M: 0.7% v 0.6%e; Y/Y: 3.5% v 3.4%e; Core RPI- Ex Mortgages Y/Y: 3.5% ...