Major overnight headlines:
• Italy risks 8 billion euro losses on derivatives contracts restructured at the height of EMU crisis, La Republica
• PBoC interbank 7-day repo rate dips below 8.0% overnight as tensions ease somewhat
• China’s ICBC chairman says willing to help provide liquidity to smaller banks, Thomson Reuters
• Australia’s Gillard calls Australian Labor Party leadership ballot, Bloomberg
• German Gfk consumer confidence at 6.8 for July, 6.5 previously, highest since late 2007
• ECB’s Draghi says ECB has ‘done a great deal’ already to support euro area, Bloomberg
• ECB’s Draghi says monetary policy cannot ‘create’ economic growth, banking union ‘essential’ Bloomberg
• ECB’s Draghi says ECB ‘ready to act again’ if needed, Bloomberg
• Norwegian unemployment rate falls to 3.5% in April from 3.7% previously
• Spanish mortgages on houses fall 18% y/y in April, up from 34% fall in March
• BoE says banks vulnerable to abrupt increase in interest rates, Thomson Reuters
Read the full report: FX Daily
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