Risk Appetite Revives on Summit Progress, Yuan Slides


Summit progress lifts the euro and the Bank of England talks tough - it's time for your FX Fix.

European leaders agreed on a bank supervision plan and help for Italy and Spain, and the euro jumped. [CNBC]

Risk currencies also got a boost and the dollar weakened as traders digested the EU summit's progress. [FT]

With China's economy slowing and the euro zone crisis lifting the dollar, the yuan had its biggest quarterly drop ever. [CNBC]

Bank of England Governor Mervyn King said British financial stability has deteriorated and called for temporarily higher bank capital levels, and the pound fell. [fxstreet.com]

German retail salesfell, increasing pressure on the European Central Bank to cut interest rates at its July meeting. [WSJ]

A Chinese central bank official said "interest is growing" among many countries to add the yuan to their foreign-exchange reserves. [WSJ]



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