Market Roundup
- United States May PPI final demand mm increase to +0.5 % (fcast 0.4 %) vs prev -0.4 %
- United States Jun U Mich sentiment prelim increase to 94.6 (fcast 91.5 ) vs prev 90.7
- Greece says to restart talks in Brussels, submit counter-proposals, closer than ever to a deal
- EZ officials discussed plan B for Greece for first time, what would happen if Greece defaulted
- EZ discussed extending Greek bailout with conditions, disbursements in tranches but no conclusions
- Greek govt ready to intensify negotiations on a political level (govt official)
- Greek govt official says greece is ready to submit counter-proposals
- Greek govt official says greek delegation to meet creditors in Brussels on Saturday morning
- ECB’s Costa warns long period of low rates could undermine stability
- S&P revises UK credit outlook to negative from stable; current rating ‘AAA’, potential Brexit weighs on ability to finance external debt & large twin deficits
- US PPI ex-Food/Energy MM May 0.10%, (consensus 0.10%, previous -0.20%)
- Fitch affirms UK at ‘AA+’; outlook stable
- Fitch affirms France at ‘AA’; outlook stable
- Fitch affirms Sweden at ‘AAA’; outlook stable
Economic Data Ahead
- –:– CN FDI (YTD) May (consensus 8.0, previous 56.5)
Key Events Ahead
- No Significant Events
FX RecapEUR/USD: Developments from Greece and a solid performance of German yields have been propping up the upside helping the shared currency clinch its second weekly gain in a row vs. the US dollar. EUR/USD is attempting to consolidate in the 1.1270/80 band. Currently the pair is up 0.16% at 1.1276. Resistances lie at 1.1297 (high Jun 12) then 1.1334 (high Jun 11) and 1.1387 (high Jun 10). On the flip side, support aligns at 1.1151 (low Jun 12) followed by 1.1087 (low Jun 8) and finally 1.1049 (low Jun 5). Option expiries for Monday 15 June: 1.1200 (539M), 1.1335 (506M)
USD/JPY: The Dollar is closing negative for the week against the Yen for the first time in the last four weeks. USD/JPY fell 60 pips from 123.80 after the better-than-expected US consumer confidence figures but later found support at 123.15 where the pair was bought again and launched back to 123., USD/JPY is trading at 123.39, down 0.01% on the day, having posted a daily high at 123.83 and low at 123.14. Resistances are seen at 123.50, 123.80 and 124.00. To the downside, supports are at 123.15, 123.00 and 122.80. Option expiries for Monday 15 June: 122.00 (810M), 123.00 (1.4BLN), 123.35-50 (1.2BLN)
USD/CAD: CAD has been a little stronger of late while oil looks to settle circa $60 towards the end of the week. USD/CAD is currently trading at 1.2320 with a high of 1.2349 and a low of 1.2275. Resistances are seen at 1.2375, 1.2406 and 1.2437 and on the flipside supports lie at 1.2272, 1.2241 and 1.2211. Option expiries for Monday 15 June: 121.00 (895M), 1.2400-15 (400M)
AUD/USD: This week was loaded with volatility for AUD amid Australian jobs data, Chinese inflation figures and a surprise rate cut by the neighbour RBNZ. The pair is on track to post its first weekly gain in four. AUD/USD slid to 0.7677 during the last session, managed to recover slightly from daily lows, recovered a few pips and is currently trading at the 0.7710 zone, still 0.54% below its opening price. Option expiries for Monday 15 June: 0.7600 (400M), 0.7650 (510M), 0.7700 (546M), 0.7735 (509M)
USD/CHF: Strengthening safe haven CHF demand ahead of the weekend pushed USD/CHF to a session lows of 0.9286 as investor sentiment suffered due to Greek concerns. Immediate support is seen at 0.9250, under which the pair could drop to 0.9232 (June 10 low). On the flip side, a break above 0.93 could see the pair re-test 0.9331 (hourly 50-MA). Option expiries for Monday 15 June: 0.9250 (500M), 0.9450 (500M)
The material has been provided by InstaForex Company – www.instaforex.com