Market Roundup
- Germany’s Gabriel defends “strict conditions” in Greek agreement.
- ECB leaves funding cap for Greek banks unchanged.
- Eurogroup’s Dijsselbloem: Bridge financing for Greece could be agreed by EZ, by Wednesday morning.
- Leftist group of Greek MPs may not vote for bailout.
- Greece will not make EUR 450m payment due to IMF on Monday.
- IMF says ready to help resolve Greek debt crisis.
- ESM’s Regling: IMF contribution & Greek privatization will diminish ESM financing contribution to bailout.
- Greek Econ Minister Stathakis: fiscal adjustment will be lighter than previously.
- Moody’s sees no quick Greek upgrade after debt deal.
- US Federal Budget, USD Jun 51.8b, f/c 51.0b, -82.4b-previous.
Looking Ahead – Economic Data (GMT)
- 01:30 AU NAB Business Conditions Jun 7-previous
- 01:30 AU NAB Business Confidence Jun 7-previous
- 03:00 NZ RBNZ Offshore Holdings* Jun 63%-previous
Looking Ahead – Events, Other Releases (GMT)
- –:– JP Bank of Japan holds monetary policy committee meeting (to July 15)
Currencies Summary
EUR/USD
EUR/USD is supported around 1.0990 levels and currently trading at 1.1006 levels. It has made session high at 1.1068 and low at 1.0990 levels. Greece finally reached a deal with its creditors after 17 long hours of intense negotiations Pair immediately reacted to the news and peaked to hit daily high of 1.1194, after the agreement between Greece and European Stability Mechanism (ESM), the pair fell drastically towards 1.1070. In the early U.S session the pair broke daily support level at 1.1066 (38.2% retracement level) to reach daily lows at 1.0995 level. German CPI, Spanish CPI, Spanish HICP, Italian CPI, German ZEW Economic Sentiment are set to be released in the European session. To the upside, immediate resistance can be seen at 1.1196. To the downside, major support level is located at 1.0990.
GBP/USD
GBP/USD is supported around 1.5460 levels and currently trading at 1.5491 levels. It has made session high at 1.5590 and low at 1.5477 levels. The pair hit high at 1.5588 in the early U.S session. But, failed to advance further and retraced back to break support level at 1.5545 and reached daily lows at 1.5488. The dollar was broadly stronger against major pairs, with the Greece deal being clichéd. The focus shifts to Fed Yellens testimonials on Wednesdays. Traders are particularly knee to know when fed will hike the rates, with the Greece deal being clichéd, September looks more likely for Fed’s to increase the interest rates. UK national statistics department is set to release CPI (YoY) figures today. To the upside, immediate resistance can be seen at 1.5587. To the downside, major support level is located at 1.5460 (23.6% retracement level).
USD/JPY
USD/JPY is supported around 123.14 levels and currently trading at 123.40 levels. It has made session high at 123.51 and low at 123.28 levels. The pair broke strong resistance at 123.14 (23.6% retracement level), and is all set to test 124.00 in the coming sessions. The pair hit one week high at 123.49 and also has closed the gaps which opened on June 26th, with the Greece deal being reached and continued stability in Chinese stocks. The Japanese Yen safe haven status is under threat in the near term. To the upside, immediate resistance can be seen at 123.51. To the downside, major support level is located at 122.61(23.6% retracement level). Overall the trend of this pair is bullish in the long term until till the pair trades above the pivot point which is located at 122.90 levels.
USD/CHF
USD/CHF is supported around 0.9457 levels and currently trading at 0.9500 levels. The pair broke strong resistance at 0.9496 (38.2% resistance level) and bouncing to test next resistance level at 0.9514. It has made session high at 0.9500 and low at 0.9457 levels. The dollar was last up 1.18 percent at 0.94870 against Swiss franc. The pair gained sharply in the early U.S session due to strong dollar demand, the pair almost gained 80pips and hit 1-week high at 0.9500. Previously, this level was breached on July 9th. To the upside, immediate resistance can be seen at 0.9532 (23.6 retracement level). To the downside, support level is located at 0.9458.
The material has been provided by InstaForex Company – www.instaforex.com