EUR/USD
The pair settled the week higher on the back of growing hopes that lawmakers will finally put their differences aside to ensure that at least in the near-term Greece doesn’t face solvency crisis. On that note, a source from the Greek finance ministry said international lenders are mulling a EUR 9bln return of ECB profits and up to EUR 8bln in interest rate cut on loans among measures to cut Greek debt. International lenders are also mulling cutting Greek debt by EUR 10bln via debt buyback and extending maturities which if approved by the Eurogroup meeting on Monday could be completed by year-end. Macro data continued to underpin the view that the bloc will likely undergo a prolonged, but a shallow recession. Also, Moody’s slashed France credit rating by one notch to Aa1, citing loss of competitiveness. In terms of technical levels, supports are seen at the 21DMA line at 1.2825, 1.2730 and then at 1.2691. On the other hand, resistance levels are seen at 1.2983/96 and then at 1.3021.
GBP/USD
The pair settled the week higher on the back of growing hopes that lawmakers will finally put their differences aside to ensure that at least in the near-term Greece doesn’t face solvency crisis. On that note, a source from the Greek finance ministry said international lenders are mulling a EUR 9bln return of ECB profits and up to EUR 8bln in interest rate cut on loans among measures to cut Greek debt. International lenders are also mulling cutting Greek debt by EUR 10bln via debt buyback and extending maturities which if approved by the Eurogroup meeting on Monday could be completed by year-end. Macro data continued to underpin the view that the bloc will likely undergo a prolonged, but a shallow recession. Also, Moody’s slashed France credit rating by one notch to Aa1, citing loss of competitiveness. In terms of technical levels, supports are seen at the 21DMA line at 1.2825, 1.2730 and then at 1.2691. On the other hand, resistance levels are seen at 1.2983/96 and then at 1.3021.
GBP/USD
The pair settled the week lower after the latest Quarterly Inflation report from the BoE, as well as alarm bell sounding jobs report from the ONS, dampened investor appetite for Sterling. The latest jobs report from the ONS in the UK showed the number of people claiming jobless benefit rose by 10,100 last month, the largest increase since September 2011, that’s as a jobs boost from the Olympics continued to fade. The BoE reinforced the fragile nature of economic recovery with the release of the Quarterly Inflation report which revealed the MPC see 'material risk' that growth could be weaker for longer and that new macro forecast show that further stimulus unlikely soon.
USD/JPY
The pair settled the week higher as market participants continued to price in the likelihood that the opposition leader Abe, who is expected to win the elections in December, will encourage the central bank to ease monetary policy. In terms of technical levels, supports are seen at 81.65/30 and then 81.14. On the other hand, resistance levels are seen at 82.84/94 and then at 83.00.
