- EUR/USD backs off highs and plays from 1.1312 to 1.1404 range.
- Euro group meet for Monday will now start at 1030GMT (vs previous 1300GMT).
- European Union Official Selmayr- New proposal good basis for progress today.
- European Union Official Juncker- Don’t know if we have agreement today with Greece.
- European Union’s Moscovici- Convinced a solution will be found this evening.
- Greek Deputy Labour minister– Proposal broadly in line with manifesto.
- Greek Deputy Labour minister – We will not back down.
- Greece offers new proposals ahead of emergency summit.
- ECB raises emergency funding cap for Greek banks.
- Czech Fin min- Greece should go bankrupt to clear air.
- German conservative, Friedrich, Greece does not have to remain in Euro Zone.
- German conservative leader, Weber, Grexit can be avoided.
- Creditors offer Greece 6mth reprieve, Tsipras weighs response.
- Washington fears losing Greece to Moscow.
- BOJ Kuroda- Monetary policy not targeting FX, ample means to hit 2% goal.
- (0830 ET/1230 GMT) Chicago Fed National Activity Index May previous -0.15.
- (1000 ET/1400 GMT) Existing Home Sales (May) consensus 5.25m, previous 5.04.
Key Events Ahead
- (1145 ET/1545 GMT) Fed Trade ops 30-yr F.Mae/Fr Mac max $1.825 bn.
FX Recap
EUR/USD is supported below 1.1400 levels and currently trading at 1.1353 levels. It has made intraday high at 1.1402 and low at 1.1310 levels. The euro climbed versus the dollar on Monday on hopes that Greece may avert a debt default after Athens offered new proposals to foreign creditors ahead of the emergency euro zone summit later in the day. The common currency ticked up 0.3 percent to $1.1383, inching closer to a one-month high of $1.1440 hit on Thursday. All eyes now turn to a pair of emergency meetings in Brussels, the first among Euro zone finance ministers and the second among the currency bloc members’ heads of state. Traders await signs of a breakthrough paving the way for a deal or a final breakdown. Moreover, a sudden bout of profit-taking or rather technical selling was seen after the pair failed to extend gains beyond 1.14 handle on several occasions. Initial support is seen around 1.1297 and resistance is seen around 1.1437 levels. Option expiries are at 1.1300 (722M), 1.1350 (244M), 1.1400 (317M).USD/JPY is supported above 123.00 levels and posted a high of 123.21 levels. It has made intraday low at 122.55 and currently trading at 123.18 levels. Pair also remains pressured on a broadly weaker US dollar largely undermined by rising EUR/USD on Greece hopes. Today Bank of Japan released monthly report. BOJ draft fiscal policy blueprint to propose flexible approach, rather than setting rigid cap, in annual state spending. BOJ will prepare economic environment to proceed with sales tax hike to 10 pct in April 2017. BOJ will scrutinise interest rate moves, fiscal balance as Japan eyes exit from deflation. Near term resistance is seen at 124.57 and support is seen at 122.10 levels. Option expiries are at 122.00 (1.56BLN), 123.50 (892M), 124.00 (481M), 125.00 (4.5BLN).GBP/USD is supported below $1.5900 levels. It made an intraday high at 1.5908 and low at 1.5823 levels. Pair is currently trading at 1.5826 levels and looks to test 1.58 barriers as traders favour the reserve currency ahead of the Greek decision. The British Pound surged to a fresh year high of 1.5929 against the greenback last week, holding to its gains by the week close and trading a few pips below it. Pair has closed in the green for 10 days in-a-row, boosted by positive local data, and the fact that the UK has distanced from Europe and the Greek issue. A weaker dollar has also supported the bullish case of the Pound. Moreover, expectations that US existing home sales are likely to resume uptrend in May also boost the greenback, dragging GBP/USD lower. Initial support is seen at 1.5744 and resistance is seen around 1.5939 levels.USD/CHF is supported around 0.9200 levels and trading at 0.9201 levels and made intraday low at 0.9160 and high at 0.9220 levels. Market is trading flat after SNB maintained its policy of negative interest rates and penalties for holding Swiss francs in cash. Today was data free session for Switzerland. Near term support is seen at 0.9113 levels and resistance is seen at 0.9289 levels.AUD/USD is supported below 0.7800 levels and trading at 0.7759 levels. It has made intraday high at 0.7795 levels and low at 0.7752 levels. Pair struggles above the pivot while RBA Board member Edwards recently said AUD is still too high. Meanwhile, there are very little fundamentals at the start of this week to run with except the main headlines that will focus on Greece as well as the continued downside risks to the greenback post the recently presented statement from the FOMC. Market will focus on US existing home sales data for the further direction. Initial support is seen at 0.7568 and resistance at 0.7838 levels.
The material has been provided by InstaForex Company – www.instaforex.com