Market Review - 06/07/2015 22:56GMT
Euro recovers on short-covering after initial losses due to Greek 'No' vote
The single currency regained some lost ground rec on Monday after opening lower following Greece's decision to vote against further austerity measures.
Although the single currency opened lower and fell to an intra-day low at 1.0969 in New Zealand as Greeks voted no to further austerity measures, price pared its losses and rose to 1.1096 in European morning on short-covering together with anticipation that a deal may be struck at the Eurozone FinMin meeting on Tue. However, euro met renewed selling there n retreated to 1.1002 at NY open b4 staging another rebound in New York afternoon.
Versus the Japanese yen, the greenback opened lower and dropped to session low at 121.70 in New Zealand on risk aversion after Greek 'No' vote before rebounding swiftly to 122.71 in Asian morning. Despite a brief pullback to 122.19 ahead of European open, dollar rose to an intra-day high at 122.93 ahead of New York open before easing off.
The British pound also opened lower and dropped to session low at 1.5510 in New Zealand and then rebounded to 1.5598 at European open. Despite a brief but retreat to 1.5532 in early European morning, cable pared its losses and rallied to an intra-day high at 1.5629 at New York midday.
In other news, German EconMin Gabriel said 'Greece is now threatened with insolvency; we cannot leave Greece alone, all EU countries now need to prepare to give humantarian aid; Greek referendum result is a rejection of ccy union rules; if Greece wants to stay in the eurozone, it now has to present new proposals that go beyond those presented so far; hopes Athens will accept in new talks that other eurozone countries cannot accept haircut without any conditions; the situation regarding Greece has become a lot more difficult; ball is in Athens' court; does not see the risk of a divide in Europe because of Greece; whether Greece will leave the eurozone or not is for Athens to decide; as sson as Tsipras is prepared to compromise we are ready to talk; it cannot be n will not be the case that the Greek referendum will change conditions of the eurozone.'
On the data front, U.S. services PMI came in at 54.8 n ISM non-manufacturing PMI was reported slightly weaker-than-expected at 56.0 vs forecast of 56.0.
Data to be released on Tuesday:
Australia's RBA rate decision and statement, Swiss Unemployment Rate, Germany's Industrial Output, U.K. Industrial Output and International Trade, Canada's Exports, Imports and Trade Balance, U.S. Redbook retail sales.
Euro recovers on short-covering after initial losses due to Greek 'No' vote
The single currency regained some lost ground rec on Monday after opening lower following Greece's decision to vote against further austerity measures.
Although the single currency opened lower and fell to an intra-day low at 1.0969 in New Zealand as Greeks voted no to further austerity measures, price pared its losses and rose to 1.1096 in European morning on short-covering together with anticipation that a deal may be struck at the Eurozone FinMin meeting on Tue. However, euro met renewed selling there n retreated to 1.1002 at NY open b4 staging another rebound in New York afternoon.
Versus the Japanese yen, the greenback opened lower and dropped to session low at 121.70 in New Zealand on risk aversion after Greek 'No' vote before rebounding swiftly to 122.71 in Asian morning. Despite a brief pullback to 122.19 ahead of European open, dollar rose to an intra-day high at 122.93 ahead of New York open before easing off.
The British pound also opened lower and dropped to session low at 1.5510 in New Zealand and then rebounded to 1.5598 at European open. Despite a brief but retreat to 1.5532 in early European morning, cable pared its losses and rallied to an intra-day high at 1.5629 at New York midday.
In other news, German EconMin Gabriel said 'Greece is now threatened with insolvency; we cannot leave Greece alone, all EU countries now need to prepare to give humantarian aid; Greek referendum result is a rejection of ccy union rules; if Greece wants to stay in the eurozone, it now has to present new proposals that go beyond those presented so far; hopes Athens will accept in new talks that other eurozone countries cannot accept haircut without any conditions; the situation regarding Greece has become a lot more difficult; ball is in Athens' court; does not see the risk of a divide in Europe because of Greece; whether Greece will leave the eurozone or not is for Athens to decide; as sson as Tsipras is prepared to compromise we are ready to talk; it cannot be n will not be the case that the Greek referendum will change conditions of the eurozone.'
On the data front, U.S. services PMI came in at 54.8 n ISM non-manufacturing PMI was reported slightly weaker-than-expected at 56.0 vs forecast of 56.0.
Data to be released on Tuesday:
Australia's RBA rate decision and statement, Swiss Unemployment Rate, Germany's Industrial Output, U.K. Industrial Output and International Trade, Canada's Exports, Imports and Trade Balance, U.S. Redbook retail sales.
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