POWER: Spain Unveils Draft Decree to Increase Power System Reliability
Jul-31 09:18
The Spanish energy ministry is processing a draft decree to strengthen Spain’s power system in emergencies following the power blackout on 28 April, it said.
- The ministry is currently processing the so called “Royal Decree” which includes measures that can be enacted with a lower regulatory status in case of emergencies and that contribute to the resilience of the electricity system.
- The draft also aims to strengthen the supervisory function of Spain’s competition authority CNMC.
- In addition, TSO Red Electrica has been tasked with developing proposals for regulatory changes regarding responses to power fluctuations, the rate of voltage variations, the scheduling of technical restrictions, and other technical elements aimed at enhancing system security.
- The decree also aims to incorporate new storage capacity into the electricity system. Spanish battery storage capacity is set to reach 22.5GW by 2030.
- The proposal is under revision until 11 August.
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EUROPEAN INFLATION: More Details On Eurozone June HICP
Jul-01 09:14
Eurozone June flash HICP Y/Y inflation came in at 1.97%, 3 hundredths below the rounded consensus of 2.0% (vs 1.90% May). On a monthly basis, Eurozone inflation came in at 0.28% (0.3% cons).
- Core HICP also printed roughly in line with consensus, at 2.29% Y/Y and 0.36% M/M (2.3% cons; May 2.28% Y/Y, -0.02% M/M).
- Looking at the individual categories:
- Services inflation printed a little higher than previously at 3.28% (3.23% May) - analysts looked for a 3.3% reading ahead of the national-level data, so that is an in line print for the category.
- Energy inflation was firmer than before, at -2.72% Y/Y (-3.57% May) - however, that came on the back of base effects as the sequential print was a mere 0.10%.
- Non-energy industrial goods, as expected, have been broadly stable in June, at 0.50% Y/Y (0.61% May). On a rounded basis, this means we have printed 0.5% or 0.6% Y/Y in every month of 2025.
- Food, alcohol and tobacco inflation came in roughly in line with recent levels, at 3.11% Y/Y (was 3.19% in May).
FOREX: USDJPY Extends Pull Lower, Breaks S-T Trendline Support
Jul-01 09:13
- Analysts have been quick to highlight that the latest greenback selling has notably been paired with an adjustment lower for the US curve, which has been pertinent alongside a significant reduction in geopolitical risk premia. With US 10yr yields slipping to a 2-month low below 4.2% this morning, the Japanese yen is comfortably the best performing currency in G10.
- Price action has extended the pullback from last week’s highs to 3.4%, which has likely been assisted by a cleaner positioning profile following last Monday’s spike to 148.03. The shooting star candle formation highlights a reversal of the recent recovery and today’s weakness in particular has been exacerbated on a break of short-term trendline support, drawn from the May lows.
- As noted, the first support comes in at 142.80 (Jun 13 low), however the key short-term support remains at 142.12, the May 27 low.
- Potentially providing an additional yen tailwind, it is worth noting the Q2 Japan Tankan survey painted a resilient picture and improved capex outlook, which we wrote about in more detail here: https://mni.marketnews.com/3TgwKpZ
Source: Bloomberg Finance L.P. / MNI
EUROPEAN INFLATION: Unrounded Flash June HICP
Jul-01 09:09
| Jun-25 | May-25 | |
| Headline (Y/Y) | 1.97 | 1.90 |
| Headline (M/M) | 0.28 | -0.05 |
| Core (Y/Y) | 2.29 | 2.28 |
| Core (M/M) | 0.36 | -0.02 |
| Non-energy industrial goods (Y/Y) | 0.50 | 0.61 |
| Non-energy industrial goods (M/M) | -0.22 | 0.09 |
| Services (Y/Y) | 3.28 | 3.23 |
| Services (M/M) | 0.67 | -0.08 |
