Europe Round up Euro slips Amid Greek Doubts, Dollar Firm- June 23th, 2015

Market Roundup

  • Germany May Flash service PMI 54.2 vs 53.00 previous, 52.6 expected.
  • Euro Zone May flash Service PMI 54.4 vs 53.8 previous, 53.6 expected.
  • UK June CBI Trends-Orders -7 vs -5 previous, +1 expected.
  • Greek offer to creditors runs into angry backlash at home.
  • Austria Schelling- We will not agree to proposals without programme for action.
  • Explosive local government debt issuance threatens China CB easing efforts.

Economic Data Ahead

  • (0830 ET/1230 GMT) US Durable Goods Orders May consensus +0.2% m/m, previous -1.0%.
  • (0830 ET/1230 GMT) US Ex-Trans Durable Gds May consensus +0.4% m/m, previous -0.2%.
  • (0830 ET/1230 GMT) US non defence Capital Goods Orders ex-Aircraft May previous -0.3%.
  • (0900 ET/1300 GMT) FHFA Home Price Index April previous +5.2% y/y.
  • (0945 ET/1345 GMT) Markit Manufacturing PMI flash June previous 54.0.
  • (1000 ET/1400 GMT) New Home Sales May consensus 515k, previous 517k.
  • (1000 ET/1400 GMT) Richmond Fed Indices June.
  • (1000 ET/1400 GMT) Philly Fed Non-Manufacturing Survey June.

Key Events Ahead

  • (0830 ET/1230 GMT) Fed’s Powell Q&A on econ policy with WSJ.
  • (1145 ET/1545 GMT) Fed Trade operation 30-year Ginnie Mae max $775m.
  • (1340 ET/1740 GMT) Labor Sec’y Perez Promoting Financial Well-Being in Retirement.
  • (1430 ET/1830 GMT) Fed Trade ops 15-yr F.Mae/Fr.Mac max $650.

FX Recap

EUR/USD is supported below 1.1300 levels and currently trading at 1.1225 levels. It has made intraday high at 1.1346 and low at 1.1219 levels. The euro slipped back on Tuesday, as traders noted a range of still-formidable political barriers to an agreement this week. A move above $1.14 late in European time on Monday followed a series of headlines indicating an agreement can be reached later this week. By 0730 GMT, the euro was trading 0.6 percent lower on the day at $1.1268. The dollar was up 0.4 percent against a basket of currencies and 0.2 percent at 123.57 yen. The major also remains heavy given lack of progress seen on the Greece front with fallout seen once again at Monday’s EU Summit while keeping an eye on a US economic releases including durable goods orders, new home sales, and manufacturing data due for release later today. Traders seem to have lost interest in this ongoing Greece story. Initial support is seen around 1.1192 and resistance is seen around 1.1375 levels. Option expiries are at 1.1100 (1.23BLN), 1.1400 (787M).USD/JPY is supported above 123.00 levels and posted a high of 123.77 levels. It has made intraday low at 123.33 and currently trading at 123.66 levels. The world’s most commonly traded currency went from strength-to-strength at the start of the new week, sending the Japanese yen lower in its wake. The US dollar continued to advance against the Japanese yen after the positive US existing home sales data. Monday kicked off a rally in the US dollar after US existing home sales recorded an above-consensus 5.35 million in May, building on April’s revised 5.09 million. In Asian session Japan released June flash manufacturing PMI data to 49.9 from May final 50.9. Near term resistance is seen at 124.57 and support is seen at 122.10 levels. Option expiry is at 124.50 (220M).GBP/USD is supported below $1.5800 levels. It made an intraday high at 1.5830 and low at 1.5762 levels. Pair is currently trading at 1.5782 levels and looks to test 1.57 barriers as traders favour the reserve currency ahead of the Greek decision and positive US existing home sales data. Today UK released CBI industrial order expectations with negative numbers at -7 m/m, earlier it was -5 m/m. Initial support is seen at 1.5744 and resistance is seen around 1.5939 levels. Option expiry is at 1.5800 (282M).USD/CHF is supported above 0.9300 levels and trading at 0.9317 levels and made intraday low at 0.9208 and high at 0.9324 levels. Pair is trading higher after positive economic data released from US. Market will eye on US economic releases including durable goods orders, new home sales, and manufacturing data due for release later today. Today was data free session for Switzerland. Near term support is seen at 0.9113 levels and resistance is seen at 0.9383 levels.AUD/USD is supported around 0.7700 levels and trading at 0.7712 levels. It has made intraday high at 0.7742 levels and low at 0.7693 levels. The Australian dollar fell back around the $0.77 handle against the US dollar on Tuesday after factory data from Australia’s biggest export destination China signalled continued weakness in June. The HSBC-Markit PMI rose from 49.2 to a preliminary 49.6 in June, where a figure below 50 signals weaker activity, while a reading above 50 indicates an expansion. Today Australia also released House Price Index data with negative numbers at 1.6%, previous it was 2.0%. Initial support is seen at 0.7568 and resistance at 0.7838 levels. Option expiries are at 0.7700 (1.2BLN), 0.7650 (653M).

The material has been provided by InstaForex Company – www.instaforex.com

Leave a Reply

Your email address will not be published. Required fields are marked *

This blog is kept spam free by WP-SpamFree.