- Euro weaker against Yen, CHF as weekend Greek talks eyed.
- EUR/USD range bound, plays in between 1.1179/1.1220 levels.
- EUR/JPY to 137.80 from 138.58 then recovery to 138.42, EUR/CHF fell to 1.0447 from 1.0495.
- Greek PM told FR/DE leaders that could not understand insistence on tough measures.
- Euro zone Finance minister to met at 1500 GMT on Saturday in Brussels to discuss Greece.
- ECB keeps ELA funding limit for Greece unchanged.
- Slovak Finance minister- Either an agreement or, if no deal, must deal with tech details for bankruptcy.
- Varoufakis- Will not accept any debt solution he considers to be “unviable”.
- Varoufakis- Greece still facing demands from creditors that it cannot agree to.
- European Union Oettinger gives Athens five days to avoid a ‘Grexit’.
- Euro zone May Money M3 Annual growth 5.0% vs previous 5.3%. 5.4% expected.
- Euro zone May Money-private loans 0.5% vs previous 0.0%. 0.4% expected.
- N/A BLS Strike Report (June).
- (1000 ET/1400 GMT)US University of Michigan Consumer Sentiment Index (final June) (consensus 94.5, previous 94.6).
- (1000 ET/1400 GMT) US University of Michigan Current Conditions Index (final June) (previous 106.8).
- (1000 ET/1400 GMT) US University of Michigan Expectations Index (final June) (previous 86.8).
Key Events Ahead
- (0945 ET/1345 GMT) Fed Trade operation 30-year Fannie Mae/Freddie Mac (max $2.225 bn).
- (1245 ET/1645 GMT) FRB Kansas City’s George at “The Puzzle of Payments Security” conference.
FX Recap
EUR/USD is supported below 1.1200 levels and currently trading at 1.1193 levels. It has made intraday high at 1.1218 and low at 1.1177 levels. The European currency is now trading almost unchanged vs. the US dollar, with pair hovering over the 1.1200 mark. Market is now focusing about a meeting between Tsipas, Hollande and Merkel in Brussels and the ECB leaving unchanged its ELA ceiling for Greek banks. Today Euro zone M3 Money Supply expanded 5.0% on a year to May and Private Loans grew 0.5% on a yearly basis during last month. The euro dropped against the safe haven yen and Swiss franc on Friday, as investors reduced exposure to the single currency amid worries over whether a deal between Greece and its creditors can be struck to avert a debt default. Ahead in the session, the final figures of the Michigan index for the month of May are also due, expected at 94.6. Initial support is seen around 1.1050 and resistance is seen around 1.1375 levels. Option expiries are at 1.1150 (315M), 1.1200 (490M), 1.1250-55 (550M).USD/JPY is supported below 124.00 levels and posted a high of 123.65 levels. It has made intraday low at 123.21 and currently trading at 123.44 levels. The Japanese currency witnessed sharp gains in Asia mainly driven by Greece concerns while upbeat Japan’s CPI print also supported the upside, pushing USD/JPY closer towards 123 handle. Near term resistance is seen at 124.57 and support is seen at 122.10 levels. Option expiries are at 122.25 (560M), 123.50 (215M), 124.00 (835M), 124.50 (369M).GBP/USD is supported above $1.5700 levels. It made an intraday high at 1.5766 and low at 1.5718 levels. Pair is currently trading at 1.5740 levels. In the absence of a first tier economic data releases out of the US, the focus is entirely on the Greek issue and the market’s overall appetite for the US dollars. The US Michigan consumer sentiment and BOE governor Carney speech scheduled at 15.15 GMT could inject volatility in the pair. Initial support is seen at 1.5624 and resistance is seen around 1.5835 levels.USD/CHF is supported below 0.9400 levels and trading at 0.9324 levels and made intraday low at 0.9317 and high at 0.9372 levels. The dollar was slowly falling against the Swiss franc on Friday, although losses are capped by the $0.93 buying area. During US trading hours, the University of Michigan confidence gauge for June is due and is expected to remain at May’s level of 94.6. Consumer confidence remains near multi-year highs, mainly due to lower oil prices and record high stock markets. Near term support is seen at 0.9113 levels and resistance is seen at 0.9383 levels. Option expiry is at 0.9410 (320M).AUD/USD is supported below 0.7700 levels and trading at 0.7687 levels. It has made intraday high at 0.7738 levels and low at 0.7683 levels. The Aussie also received fresh momentum from higher commodity prices with gold posing a solid recovery. While, the Greek story is set to continue, with Euro group officials meeting failed to reach a Greek solution after yet again ending yesterday’s meeting in a no deal. A euro zone finance ministers’ meeting scheduled for Saturday will be decisive for Greece and its ongoing debt crisis, German Chancellor Angela Merkel said on Friday morning, following a day and night of frantic negotiations between Athens and its international lenders. Initial support is seen at 0.7568 and resistance at 0.7838 levels. Option expiries are at 0.7700 (307M), 0.7730 (260M), 0.7750 (268M), 0.7800 (1BLN).
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