The first half of today’s session was rather subdued due to a lack of pertinent fundamental news, with the USDindex extending on yesterday’s gains to print fresh 1 month highs despite starting the European session in mild negative territory. Meanwhile, USD/JPY remained above the 123.00 handle throughout the session and near 8 year highs with analysts at JP Morgan suggesting a medium term rise in the pair looks set to continue after breaking above the critical 122.04 resistance level yesterday, with the next notable medium term target being the 124-126 range.
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).
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).
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