Stocks surged as did pretty much every currency against the dollar as there was a major breakthrough at the EU summit.

The agreements include: the European Stability Mechanism (ESM) loan to Spanish banks will not have senior creditor status which effectively takes pressure off the country’s credit spread; the ESM will also be allowed to directly recapitalise banks; the rescue funds themselves will be used more flexibly to support compliant countries; and finally, the European Central Bank (ECB) will be acting as an agent for the rescue funds in market operations.

It was pretty much one way for stocks but for bonds we initially came off before going back up again. The Euribors provided a good shorting opportunity as we hit highs in the red month spreads before coming off for the 1/2 tick. After the first couple of hours of trading, it all sort of died down, and it was another low volume day for the Euribor.

However all in all June has been a positive month with plenty of events providing the volatility to be able to catch some swings for us day traders.

Hopefully July continues that way, as we have, as always a busy data week next week most notably, ECB press conference, BoE rate decision and Non Farm Payroll!

Hoping for a good one.