The market remains positive on the recent developments in Europe, supporting risk across the board. EURUSD continues to feel heavy falling to 1.3026 from yesterday’s high of 1.3212. In China manufacturing PMI had a strong print coming in at 50.5 vs. 49.6 exp. The fact that the EU summit ended with no real development failed to dampen the growing optimism (only the 16th summit in the two years…

Risk appetite was firm in Asian session as the FT produced an article suggesting that the next LTRO could find demand of up to €1trn. If this is correct it would all but eliminate concerns that European banks could face a near term liquidity crisis. Optimism continues to grow despite the fact that Eurozone summit yesterday brought no real progress on the Greek debt crisis. There is a growing…

With Greek negotiations ongoing but yet to reach a conclusion, media chatter over the weekend was dominated by reports that Germany wishes to have greater oversight of Greece’s budget – a proposal that Greece has readily dismissed. The suggestion was endorsed by German cabinet minister Philipp Roesler, and reflects the widespread scepticism both across the market and amongst policy makers that…