No deal for Greece. June 30th deadline inches closer
Key Notes:
- BoJ releases monetary policy meeting minutes
- China CB leading index m/m 1.1% vs. 1.4% previously
- Switzerland UBS Consumption indicator 1.73 vs. 1.67 previously
- German Ifo business climate 107.4 vs. 108.2
- France GDP m/m 0.6% vs. 0.6%; GDP y/y 0.8% vs. 0.7%
- UK BBA Mortgage approvals 42.5k vs. 43.1k
- US Final GDP q/q -0.2% vs. -0.2%
- US Final GDP price index q/q 0.0% vs. -0.1%
- US PCE Annualized q/q 2.1% vs. 1.9%; Core PCE annualized 0.8% vs. 0.8%
Later:
- US Crude Oil inventories
The Asian trading session was relatively quiet as investors weighed in on the ongoing Greece crisis. There were no major news releases from the Asian session with the exception of the Bank of Japan releasing its meeting minutes. There was nothing significant on the minutes as the Yen remained unchanged. USDJPY was well supported opening above the support/resistance level at 123.305 and trading well above this level. Today’s price range in USDJPY was mostly sideways as the currency was seen trading within yesterday’s high and low.
The AUDUSD was also trading sideways for the most part, with the Aussie briefly testing session highs above 0.7765 before easing lower. The NZDUSD currency pair was more positive with the Kiwi showing signs of lifting off from its lows below 0.682. At the time of writing, NZDUSD was trading at 0.687 trading near today’s highs and having broken out from yesterday’s range. A bullish close on the daily chart could see some short term correction in the Kiwi before the downtrend resumes.
In Europe, the French GDP numbers posted were largely positive beating estimates, but the EURUSD was trading sideways ahead of the start of the Eurogroup meeting. Late afternoon, Greek Premier, Tsipiras announced that the creditors had rejected Greece’s new proposals sent earlier this week. The new set of reforms promised increase VAT and also touched on pensions, which did not go down too well with the Syriza party and its supporters. However, with the deal now being rejected, it is back to square one for the Greece negotiators as the June 30th deadline starts to move closer.
EURUSD was trading flat for the day and within yesterday’s range and did not react much to the news on Greece.
GBPUSD continued to decline from its recent highs near 1.59 and closed below the main support level at 1.5779 which could now act as resistance. The next support comes in at 1.5685 in the event the resistance at 1.5779 holds any rallies.
The US trading session saw the release of the revised GDP data for the first quarter. GDP managed to meet estimates of -0.2% while the GDP price index remained flat, modestly above estimates of -0.1%. The annualized PCE for the quarter rose 2.1% on the headline and 0.8% on the core. The US Dollar remains well supported with price action having tested the support at 95.25, which could now set the stage for a rally back to 96.55.
