Market Roundup
- Fed’s Rosengren: may be appropriate to hike later this year, considerable uncertainty around information & labor f/c.
- Fed’s Rosengren: strong USD is good news for US economy, shows US econ strengthening (BBG).
- BOJ can wait to gauge China fallout before easing (Abe adviser Hamada).
- Greek main opposition authorizes PM to reach deal with creditors.
- Lithuanian president: Greek proposals based on outdated information, proposal will really not be enough.
- Greek banks need 14 bln euros in capital even with a deal (Greek banking source).
- German econ upswing solid, low EUR fx rate helped drive foreign demand (Econ Ministry).
- Germany’s Friedrich: Greek proposals no basis for further talks, Greece needs a new start w/its own currency.
- US Treasury’s Lew: Greek debt restructuring needs to include adjustment to cash-flow burden.
- US Wholesale Inventories MM May 0.8%, f/c 0.3%, 0.4%-previous.
- US Wholesale Sales MM May 0.3%, f/c 0.6%, 1.7%-previous.
- CA Employment Change Jun -6.4k, f/c -10.0k, 58.9k-previous.
- Interim Iran nuclear deal extended to Monday to allow more talks.
- White House: ‘Never been closer’ to agreement in Iran nuclear talks
Looking Ahead – Economic Data (GMT)
- –:– CN Exports YY* Jun f/c -0.2%, -2.5%-previous
- –:– CN Imports YY* Jun f/c -15%, -17.6%-previous
- –:– CN Trade Balance* Jun f/c 55.70b, 59.49b-previous
- 22:45 NZ Food Price Index* Jun 0.4%-previous
- 04:30 JP Industrial Output Rev* May -2.2%-previous
- 04:30 JP Capacity Utilization Idx Change MM* May -0.4%-previous
Looking Ahead – Events, Other Releases (GMT
- Jul 12 15:00 BST Euro Summit begins,
Currencies Summary
EUR/USD
EUR/USD is supported around 1.070 levels and currently trading at 1.1152 levels. It has made session high at 1.1214 and low at 1.1118 levels. The pair, surged as Greece sent a proposal for reforms to its creditors. The euro climbed to a one-week high against the yen of 137.25, up by 2.0 percent. Against the dollar, the euro was up 1.1 percent at $1.1204, Dollar started to gain the earlier losses made to Euro after Federal Reserve Chair Janet Yellen said on Friday she expects the Fed to raise interest rates at some point this year. To the upside, immediate resistance can be seen at 1.1206. To the downside, support levels are located 1.1065, 1.0990. All eyes will be on Sunday’s summit between European leaders scheduled in the afternoon to reach consesus on Greece. Due to the following events,there will be extreme volatility in market. Monday markets in Asian session may open with big gaps.
GBP/USD
GBP/USD is supported around 1.5325 levels and currently trading at 1.5498 levels. It has made session high at 1.5550 and low at 1.5465 levels. During early U.S session the pair consolidated at 1.5440, and broke resistance at 1.5454 to inch towards 1.5500 level. The U.K office for national statistics released Trade balance figures which printed at £-8 BLN actual against £ -9.70 BLN. market outlook improved after Greece made offer to cut spending and hike taxes. Sterling climbed above 1.5522 in the US session, drawing support from bullish rally in the euro on optimism that Greece was making progress in its efforts to secure more funding and stay in the European union. To the upside, immediate resistance can be seen at 1.5554. To the downside, support levels are located at 1.5450, 1.5400 levels. Overall trend of this pair remains bullish in the short term.
USD/JPY
USD/JPY is supported around 122.11 levels and currently trading at 121.75 levels. It has made session high at 122.88 and low at 122.68 levels. To the downside, support level is located at 120.40. The pair gained almost 130 pips today and the bullish sentiment for this pair is set to continue further towards 123.00 and later 123.80 in the coming week. Chinese’s stocks rebounded after Chinese authorities stepped in to curb the irregularities in the market. To the upside, immediate resistance can be seen at 122.97. To the downside, support level is located at 122.10.
USD/CHF
USD/CHF is supported around 0.9325 levels and currently trading at 0.9383 levels. It has made session high at 0.9420 and low at 0.9326 levels. In the US session, the pair fell almost 120 pips as Euro surge hammered CHF down to renewed optimism of Greece reform. Swiss franc, which tend to do well when there is crisis in financial markets, lost ground as demand for riskier assets also picked up after Chinese shares rebounded, the pair failed to break daily resistance at 0.9480. In the mid US session, USD trimmed some loss against CHF, after fed’s yellen said sooner or later fed will increase the rates. Traders will be keenly watching, the outcome of Euro group Summit scheduled on Sunday .To the upside, immediate resistance can be seen at 0.9490. To the downside, support level is located at 0.9460.
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