FXStreet (Guatemala) – Analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd said that they have set a wider than usual trading band for the week ahead and for obvious reason.
Key Quotes:
“Yes, like us writing, you are probably tired of reading about Greece but this whole topic should reach some form of conclusion next week.”
“The current bailout program expires and the IMF payment of EUR 1.6bn is due by the end of Tuesday, so some form of deal is required by then. While expectations continue to shift back and forth, the continued overwhelming expectation is that a deal will be done.”
“Hence, we do not expect any positive conclusion to have much lasting impact on lifting the euro, especially with the key US employment data to follow on Friday. If Greece is resolved next week and we get a strong ADP report on Wednesday, then the dollar is likely to perform well as the focus shifts back to relative monetary policy divergence expectations.”
“The data from the US is generally going to get greater attention over the coming weeks ahead of the semi-annual testimony to Congress by Chair Yellen on 15th July. Data next week should continue to point to the Fed having to signal to the market that September may be the required time for lift-off.”
(Market News Provided by FXstreet)