Published at 00:39 (GMT) 23 Jun 

EUR/USD, EUR/JPY Flows - WSJ: France Lagarde hints at more cuts; may cut GDP too (SPEC2301)

More differences emerging between US and Europe ahead of G20 on austerity vs stimulus for global growth. WSJ interview: France might take new austerity measures this summer if the country's economy fails to meet growth targets, Finance Minister Christine Lagarde said Tuesday. "Balancing our public finances is a priority," Ms. Lagarde said. The statement came against the background of weakening economic growth prospects in France. After Q2 GDP in Aug, France might have to cut its 2011 growth forecast from 2.5%. France's resolve to square its finances comes before G20 meeting. Broadly, the U.S. wants govts world-wide to maintain consumer demand in order to not choke growth. But the Europeans have pledged to focus on rigorous budgets in order to avoid Greece-style crises over their sovereign debts. On FX, EUR weighed by concerns over slowing Eurozone growth. EUR 1.2263-65, eye 1.2150.WL