In the second half of the session, EUR/USD recovered from its earlier softness after reports emerged that Greece and its creditors have started creating a staff level agreement which will include a long term solution which saw the pair break into positive territory as negotiations between Greece and its creditors finally seem to be drawing to a close. However, EU’s Dombrovskis later clarified to markets that ‘they are still not there yet’ in regards to a deal.
In terms of Central Banks, the BoC failed to provide the market with any shocks by leaving their rate unchanged at 0.75% and reiterated that that the current level of financial easing remains appropriate and economic outlook is mainly in line with the April monetary policy review and failed to provide a sustained reaction in USD/CAD.
Looking ahead tomorrow’s sees a pick-up in economic data with highlights in the form of UK GDP, Japanese Retail Sales, US Pending Retail Sales, US Initial Jobless Claims, Pending Home Sales, EIA NatGas Storage Change, DoE Crude Inventories as well as comments from Fed’s Williams (Voter, Dove), ECB’s Constancio (Soft Dove), ECB’s Nowotny (Soft Hawk) and Fed’s Kocherlakota (Non-Voter, Dove).
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.