Greece going ahead with their controversial referendum

The recent trends of a flood of Greek news hitting the market mid-morning continued today, with the latest episode leaving many uncertain of the chances of further progress in talks between Greece and their creditors. Markets kicked off in a somewhat positive fashion before an FT article suggested that Greek PM Tsipras was prepared to accept bailout conditions. This saw an immediate move higher in EUR/USD as speculation then started to circulate that Greece may cancel the upcoming referendum.

However EUR/USD strength was short lived after downbeat source comments from creditors suggesting that Tsipras would only agree to a deal if amendments were made, and creditors would be reluctant to agree to these amendments. As a consequence of dampened sentiment, EUR/USD broke below 1.1100 to the downside to end the session around 80 pips off its highs, with Tsipras later confirming the referendum will go ahead as planned, with his preferred outcome being a `no` vote.

EUR/USD was further weakened by USD strength as positive US data strengthened the greenback. This came in the form of US ADP Employment Change (237K vs. Exp. 218K), which particpants pay close attention to ahead of tomorrow’s early release of US nonfarm payrolls report before Friday’s US 4th July bank holiday.

Looking ahead, as well as US nonfarm payroll report, tomorrow also sees the Riksbank rate decision, ECB minutes, US factory orders and EIA NatGas storage change. On the speaker slate, comments are expected from ECB’s Draghi (Soft Dove) and Mersch (Soft Hawk).