Major overnight headlines:
• Mediobanca warns that Italy could apply for an ESM bailout in six months because of political instability, Euro Intelligence
• BoE’s King says not “sensible” to return interest rates to normal levels until recovery sustainable, Thomson Reuters
• BoE’s Bean says rate cut, including to “below zero” still an option for the MPC, Thomson Reuters
• ECB’s Coeure says our “exit” is distant, monetary policy to remain accommodative, Thomson Reuters
• Dutch GDP (Q1 F) -0.4% q/q versus -0.1% expected
• Swedish PPI falls 0.1% m/m in May versus a fall of 0.2% expected
Read the full report: FX Daily
BMO