Sterling Lifted by Job Data, Strength Limited

Sterling strengthened mildly against dollar and Euro today after better than employment data. Claimant count dropped more than expected by -8.6k in May, versus consensus of -5.0k.

Unemployment rate was unchanged at 7.8% in April. The data added more evidence to recovery in UK.

Nonetheless, strength in the pound is relatively limited. BoE Fisher warned that "growth is going to be slow for a long time". He noted that while Q2 looked "very good", "these things will flip from one quarter to another".

In Eurozone, German constitutional court continued the hearing on ECB's OMT bond-purchase program today.

 

 Bundesbank chief Weidmann noted that "secondary market bond purchases should not be used in my understanding in a European currency union to lower the solvency risk premiums of individual countries.

 

" ECB board member emphasized that the program is within ECB's mandate. The strong signal was "required to convince market participants of our seriousness and decisiveness in pursuing the objective of price stability."

 

Yesterday, MSCI lowered Greece to emerging market status, down from developed market status.

 

 It said that in the Greek equity markets, the "in-kind transfer and off-exchange transaction like facilities" are so "restrictive" and "unusable".

 

And Greece, failed to meet the criteria including securities borrowing, lending facilities , short selling and transferability. Greece was the first developed country downgraded.

 

Elsewhere, Japanese domestic CGPI rose 0.1% mom in May, machine orders dropped -8.8% mom in April.

 

Australia Westpac consumer confidence rose 4.7% in June. German CPI was finalized at 1.5% yoy in May. Eurozone industrial production rose 0.4% mom in April.