Market Roundup
- Euro pressured as Greece, creditors negotiate debt deal.
- Greek president Pavlopoulos rules out Grexit.
- EU Juncker: Don’t make plans for Grexit.
- Greek govt continues to support Varoufakis, expressed at Sun meeting.
- Greek govt official: Political group to lead talks with lenders under Varoufakis supervision.
- Italy Econ Minister says don’t think Greece is risk for Italy.
- Fitch says downgrades Japan due to lack of spending cuts to offset delay in sales tax hike.
- United Kingdom Apr CBI trends – orders increases to +1 (consensus 4 ).
- Germany Mar Import Prices mm decrease to +1.0 % (consensus 0.5 %) vs previous 1.4 %.
- Germany Mar Import Prices yy increase to -1.4 % (consensus -1.4 %) vs previous -3.0 %.
Economic Data Ahead
- (1045 EDT/1445 GMT) USMarkit Services PMI (flash Apr) previous 59.2
- (1045 EDT/1445 GMT) USMarkit Composite PMI (flash Apr) previous 59.2
- (1130 EDT/1530 GMT) USDallas Fed Texas Manufacturing Outlook Survey (Apr) previous -17.40
Key Events Ahead
No significant event scheduled
FX Recap
EUR/USD touched the downside level and made new low at 1.0824. Pair is currently trading at 1.0835 levels. Big event risk includes ECB/FED meets, US GDP/ISM later in the week. Next support falls at 1.0803, 1.0785. Short term resistance is expecting at 1.0898 levels. Option expiries at 1.0800 (848M), 1.0850 (251M), 1.0900 (1.3BLN).USD/JPY is currently trading at 119.21 after creating the 119.40 levels so far. Any break below 118.16 will drag the pair further down till 116.85/115.90 in short term. On the upside minor resistance is around 120.05 and any break above would extend gains till 120.81/121.18. The minor supports are 119/118.45/118.15. Option expiries at 118.40-50 (520M), 119.00 (768M), 120.00 (1.8BLN).GBP/USD has broken major resistance 1.5165 and is trading above that level. Overall trend is bullish as long support 1.4950 holds. The movement of GBP/USD in this week depends on the UK GDP data which is to be released on 28th Apr GDP is expected to be slowed to quarterly 0.5% in the first three months of this year, down from 0.6% in the final quarter GDP data is expected to curb the further uptrend in GBP. On the upside major resistance around 1.5200 and any break above will target 1.5268/1.5300. The pair’s minor support is around 1.4950 and short term weakness only below that level. Option expiries at 1.5080-90 (420M), 1.5200 (264M).USD/CHF made intraday high of 0.9582. Pair is currently trading at 0.9563 levels. It has resistance at 0.9643 levels and above which it could be pushed to 0.9717 levels. On the other hand, support is seen 0.9493 levels and below which it could be seen testing 0.9449 levels. Markets now await US services PMI reading later in the day.AUD/USD has broken tend line resistance 0.7820 and mad a high of 0.7835 level. Overall trend is bullish as long as support 0.7695 holds. Short term trend reversal is only below 0.7750. The pair’s major resistance is around 0.7835 and any break above will take the pair till 0.7935 in short term. On the downside minor support is around 0.7750 and break below will drag the pair further down till 0.7695/0.7680. Option expiries at 0.7780-90 (560M) – NB: another AUD 1.1bln here Tuesday’.
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