Forex Trading Library

Forex Afternoon Wrap – 30/06

0 135

EURUSD steady above 1.18. Closes positive from Monday’s weak open

Key Notes:

  • UK Gfk Consumer confidence 7 vs. 2
  • Australia private sector credit m/m 0.5% vs. 0.5%; y/y 6.2% vs. 6.1%
  • Spain retail sales m/m 0.5% vs. 0.0%; y/y -0.4% vs. 2.8%
  • Switzerland GDP q/q 0.5% vs. 0.4%; y/y 1.7% vs. 1.7%
  • KOF Swiss leading indicator 89.7 vs. 93.7
  • Spain unemployment rate 6.4%
  • Italy unemployment rate 12.4%
  • UK GDP q/q 0.4% vs. 0.4%; y/y 2.9% vs. 2.5%
  • UK Current account -26/5bn vs. -24bn
  • UK Index of services 3m/3m 0.5% vs. 0.5%; m/m 0.2% vs. 0.3%
  • Eurozone CPI y/y 0.2% vs. 0.2%; Core CPI y/y 0.8% vs. 0.8%
  • Eurozone unemployment rate 11.1% vs. 11.1%
  • Italy CPi m/m 0.1% vs. 0.1%; y/y 0.1% vs. 0.1%
  • Canada GDP m/m __% vs. 0.1%; q/q ___%; y/y __% vs. 1.5%

Later:

  • S&P/CS 20-City HPI
  • Chicago PMI
  • US Consumer confidence

A day after the markets opened on a panicked mode, the markets were seen largely stabilizing late in Monday’s close. While the Yen and the Greenback enjoyed temporary safe haven inflows, the US Dollar declined late in Monday with the same theme running into today’s open. The Asian trading session today was light with Australia’s private sector credit showing a steady pace of growth at 6.2% annualized, beating estimates of 6.1%. The AUDUSD was however very choppy today and remained within yesterday’s range. The NZDUSD however continued to weaken today as the currency fell close to -1.3% at the time of writing, to test fresh yearly lows at 0.6759.

The Japanese Yen was also modestly stronger for the second day. USDJPY remained under pressure with the currency testing 122.5 region.

The European trading session continued to see commentary from various EU and Eurozone country officials regarding Greece. The debt ridden country was expected to pay out the IMF today but the authorities declared that there would be no IMF payment until the referendum concludes. IMF Chief, Christine Lagarde has been harsh in her comments but admitted some more grace period for Greece.

Economic data from Europe today saw the Eurozone flash CPI estimates at 0.2% on the headline and 0.8% on the core. The data did not bring much volatility to the Euro currency which was already well supported since yesterday.

Swiss GDP data showed a modest growth in GDP to 0.5% for the month and 1.7% for the year. The Swiss Franc however continued to stay pressured. Retail sales from Spain rose 0.5% beating estimates for an unchanged reading.

From the UK, the final revised first quarter GDP data was modestly improved to 0.4%, meeting expectations. While the GBPUSD initially spiked on a rally, the Cable failed to hold on to the gains and slipped back to trade near 1.572 at the time of writing.

The US trading session saw the Canadian GDP data being released. For the month, Canada’s GDP contracted -0.1% a modest recovery from previous month’s contraction of -0.2%. On an annualized basis, Canada’s GDP stood at 1.2%. USDCAD was up 0.79% after the release.

Leave A Reply

Your email address will not be published.