- Switzerland surges as Greece fears prompt safe haven flows. EUR/CHF to 2 week low at 1.0404.
- USD/CHF matches last week’s low at 0.9234 from 0.9326.
- EUR/USD rises to 1.1293 but falters ahead of the figure.
- Sterling hits 1 month high vs USD at 1.5745 from 1.5627 to 1.5748.
- NZD/USD hit fresh 5 year low at 0.6925.
- Greece Central bank- Seems compromise reached on main conditions, little ground to be covered.
- Senior EZ official- Euro group on Thursday not expected to hold long discussion on Greece.
- Senior EZ official- Institutions moved sig beyond what was agreed on February 20 on Greece.
- BOE minutes show MPC voted 9-0 in June to keep interest rates unchanged at 0.5%.
- UK Average weekly earnings 3month to through April 2.7% y/y. 2.1% expected. Strongest since April 2011.
- UK May Claimant count -6.5k vs previous -7.8k revised. -12.3k expected.
- UK April ILO unemployment rate 5.5% vs previous 5.5%. 5.5% expected.
- Euro Zone May Inflation, final 0.2% m/m, 0.3% y/y vs previous 0.2%/0.3%. 0.2%/0.3% expected.
- Switzerland June ZEW Investor sentiment 0.1 vs previous -0.1.
- Japan Inada- Yen too strong when democratic party of Japan was in power, situation resolved.
- (0800 ET/1200 GMT) US MBA mortgage application indices.
- (1030 ET/1430 GMT) EIA weekly petroleum statistics.
Key Events Ahead
- (0900 ET/1300 GMT) FOMC two-day meeting resumes.
- (1000 ET/1400 GMT) Treasury secretary Lew testifies on FSOC report before House Financial Svcs Cmte.
- (1400 ET/1800 GMT) House Financial Services Cmte holds hearing on economic stability of the IMF.
- (1400 ET/1800 GMT) FOMC Statement.
- (1400 ET/1800 GMT) FOMC economic projections.
- (1430 ET/1830 GMT) Fed Chair press conference.
FX Recap
EUR/USD is supported above 1.1200 levels and currently trading at 1.1255 levels. It has made intraday high at 1.1291 and low at 1.1237 levels. The Euro zone released its monthly inflation figures for May that matched previous readings and in line with expectations, with a mute effect on the market. No progress has been made in Greece. The endless Greek´s debt story has gathered most of the market’s attention these days. PM Alexis Tsipras addressed to the local Parliament, saying that Greece cannot accept deeper austerity demands from its international creditors, while German Angela Merkel demanded the country to fulfil the terms of its second aid program in order to get help. Initial support is seen around 1.1144 and resistance is seen around 1.1386 levels. The US Federal Reserve will have its monthly economic policy meeting later on in the day, followed by a press conference by chairs’ Yellen. Expectations are of no changes in the ongoing policy, although the market will be looking for clues on what’s next on the statement. Option expiries are at 1.1100 (1.4BLN), 1.1150 (386M), 1.1200 (765M).USD/JPY is supported above 123.50 levels and posted a high of 123.96 levels. It has made intraday low at 123.33 and currently trading at 123.93 levels. Yen is depreciated after the policy chief from Japan’s ruling party commented on the currency. He said he Won’t comment on whether further falls in the yen are undesirable for the economy as well as must be mindful of the pain small regional firms are feeling from rising import costs via a weak yen. Near term resistance is seen at 124.57 and support is seen at 123.02 levels. Option expiry is at 123.00-15 (700M).GBP/USD is supported above $1.5700 levels. It made an intraday high at 1.5748 and low at 1.5624 levels. Pair is currently trading at 1.5741 levels. Sterling rose to a one-month high against the dollar on Wednesday while gilt futures fell, after data showed wages in Britain growing at faster than expected. Sterling rose 0.5 percent to $1.5731, a one-month high, up from around $1.5677 before the data and the minutes were released. Initial support is seen at 1.5595 and resistance is seen around 1.5788 levels. Option expiries are at 1.5500 (613M), 1.5550 (309M).USD/CHF is supported below 0.9300 levels and trading at 0.9288 levels and made intraday low at 0.9234 and high at 0.9323 levels. The Swiss franc rallied across the board on Wednesday, climbing to a two-week high against the euro, as fears that debt-stricken Greece could default and tumble out of the euro zone drove investors in search of safety. Against the dollar, the franc gained as much as 1 percent to $0.9234, equalling last week’s peak, and it’s highest in a month. Near term support is seen at 0.9242 levels and resistance is seen at 0.9372 levels. Option expiry is at 0.9425 (420M).AUD/USD is supported below 0.7700 levels and trading at 0.7673 levels. It has made intraday high at 0.7755 levels and low at 0.7671 levels. Pair has dropped on the back of commodity prices and iron ore falling to near all time lows. Today Australia released MI leading indicator index. The six month annualised deviation from trend growth rate in the Westpac-Melbourne Institute Leading Index , which indicates the likely pace of economic activity three to nine months in the future, declined from +0.19% in April to -0.02% in May. Initial support is seen at 0.7568 and resistance at 0.7811 levels. Option expiries are at 0.7600-10 (420M), 0.7800 (506M).
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