The Day So Far

Caution reined across markets this morning, following reports yesterday that the IMF had pulled its negotiating team from Athens. This is a move designed to put pressure on the Greek Government to cave in to some of the creditors main demands regarding the primary budget and key labour and pensions reforms. Talks between Tsipras and the European Commission’s Juncker ended in acrimony yesterday, after Juncker felt Tsipras reneged on their initial agreement sketched out last Wednesday, the basis of which Juncker had intended to present the European leaders and the IMF with. Therefore, we remain back at square one with just three weeks left to thrash out a deal. This news, which had disturbed the sharp rebound enjoyed by equities over the last couple of sessions, caused the skittishness seen this morning, with the euro dipping below the 1.12 handle and the Dax sliding back towards critical 11,000 support. In volatile trading, equities then swiftly retracing after a German finance Ministry spokesman said that contrary to yesterday’s reports, the IMF didn’t terminate its negotiations with the Greeks. Elsewhere, German Chancellor Merkel admitted her frustration with the strength of the euro, saying that it made it harder to introduce reforms in the peripheral countries. The euro fell accordingly before retracing on the IMF denial.


The Afternoon View

This afternoon is relatively quiet, the University of Michigan Consumer Sentiment survey at 15:00 BST the notable highlight. We also have inflation data out from the US, with PPI Final Demand for May due at 13:30 BST, but with the calendar on the light side, we anticipate cautious markets going into the weekend. We retain our long bias for equities but remain short the euro versus the dollar, although it is worth noting just how resilient the euro has been despite the numerous challenges in recent days. Over the past week we have witnessed last Friday very strong NFP report, solid US retail sales and the latest breakdown in talks between the Greeks and their creditors, yet the dollar is struggling to gain any traction. Perhaps traders are still expecting a positive outcome to this Greek drama and have discounted this week’s strong data to make any difference regarding the Fed’s intentions for the first rate hike.

Amplify Trading is a Limited company registered in England and Wales. Registered number 6798566. Registered address: 50 Bank Street, 3rd Floor, Canary Wharf, London, E24 5NS. Information or opinions provided by us should not be used for investment advice and do not constitute an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. When making a decision about your investments, you should seek the advice of a professional financial adviser.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus. 

AUD/USD News
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision. 

USD/JPY News
Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price attracts some dip-buying during the Asian session on Thursday and seems to have stalled its retracement slide from the $2,600 mark, or a fresh all-time peak touched the previous day. The US dollar trims a part of its intraday gains to a one-week high, which turns out to be a key factor lending support to the commodity.

Gold News
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures