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22 Jun 2015
All eyes on Euro group, Greece
FXStreet (Mumbai) - An unusual Asian session, with Greece headlines emerging the major market mover, with EUR/USD testing 1.14 barrier on hopes of a positive end to the ongoing Greek saga. While markets continue to weigh downside risks across the FX space on Greece debt troubles, boosting demand for safe-havens such as yen, treasuries, gold etc.
Key headlines in Asia
EU official calls Greek proposal 'good basis for progress'
NZ Westpac Consumer confidence dented by Q2 economic outlook
RBA's Edwards: Australian Dollar still too high
Dominating themes in Asia - centered on JPY, AUD, NZD
A data-thin Asian session, with Asian equities riding higher ahead of a top-level meeting among EU leaders, which is likely to see a deal struck between Greece and its creditors. While, the shared currency benefitted the most amongst the G10 currencies, just shy of 1.14 handle, especially after the EU Chief Juncker called the new Greek debt proposal "good basis for progress" at the Euro summit on Monday.
The Aussie emerged the second on the winning end as the US dollar remains broadly undermined on strengthening EUR/USD. While NZD/USD mimics gains from its Oz neighbor, completely ignoring mixed 2-tier economic data from the New Zealand. The NZ consumer confidence gauge declined in the June quarter, but migration data continued to show a strong flow of new people arriving to New Zealand last month. While NZ credit card spending data was seen flat for June at 7.1%.
Meanwhile, Japan’s benchmark Nikkei 225 index rose over 1% to 20,387.20, while the ASX 200 index trades 0.11% higher, above 5600 levels.
Heading into Europe - centered on EUR, GBP
The Greek crisis will remain at the center of attention today as well as in the week ahead.
EU leaders will meet on Monday for an emergency session aimed at resolving the Greek crisis after all previous attempts failed to break the current deadlock. Today’s meeting will probably be one of the last chances to avert Greece’s possible exit from the euro zone and - worse - potential contagion that could affect global financial markets.
Greece's Finance Minister Yanis Varoufakis wrote on his blog over the weekend, "At this, the 11th hour, stage of the negotiations, before uncontrollable events take over, we have a moral duty, let alone a political and an economic one, to overcome this impasse. This is no time for recriminations and accusations. European citizens will hold collectively responsible all those of us who failed to strike a viable solution."
While today, the European Commission President Jean-Claude Juncker called the new Greek debt proposal "good basis for progress" as reported by Reuters.
Eurogroup Chair Dijsselbloem noted on Thursday after the meeting that it is still possible to find an agreement on Greece, which could lead to an extension of the existing program that expires on June 30.
Moving ahead, later in the US session, US existing home sales data will be published at 14GMT with expectations of 5.27M additions in June against 5.04M figures booked in May.
EUR/USD Technicals
Anaylsts at Credit Suisse note, "EUR/USD has pushed up through the 1.1386 recent high to test the converging range highs at 1.1447/67 before retracing lower. We again look for selling to be found here, for a reversion back into the range. Support moves to 1.1340/30 initially, below which can see a small top for 38.2% retracement support and the accelerated uptrend at 1.1291/65. Below this latter area is needed to suggest a better high may have been seen for 1.1207/01, ahead of 1.1151/32. Below here would aim at the mid-point of the range at 1.1052/35.”
Key headlines in Asia
EU official calls Greek proposal 'good basis for progress'
NZ Westpac Consumer confidence dented by Q2 economic outlook
RBA's Edwards: Australian Dollar still too high
Dominating themes in Asia - centered on JPY, AUD, NZD
A data-thin Asian session, with Asian equities riding higher ahead of a top-level meeting among EU leaders, which is likely to see a deal struck between Greece and its creditors. While, the shared currency benefitted the most amongst the G10 currencies, just shy of 1.14 handle, especially after the EU Chief Juncker called the new Greek debt proposal "good basis for progress" at the Euro summit on Monday.
The Aussie emerged the second on the winning end as the US dollar remains broadly undermined on strengthening EUR/USD. While NZD/USD mimics gains from its Oz neighbor, completely ignoring mixed 2-tier economic data from the New Zealand. The NZ consumer confidence gauge declined in the June quarter, but migration data continued to show a strong flow of new people arriving to New Zealand last month. While NZ credit card spending data was seen flat for June at 7.1%.
Meanwhile, Japan’s benchmark Nikkei 225 index rose over 1% to 20,387.20, while the ASX 200 index trades 0.11% higher, above 5600 levels.
Heading into Europe - centered on EUR, GBP
The Greek crisis will remain at the center of attention today as well as in the week ahead.
EU leaders will meet on Monday for an emergency session aimed at resolving the Greek crisis after all previous attempts failed to break the current deadlock. Today’s meeting will probably be one of the last chances to avert Greece’s possible exit from the euro zone and - worse - potential contagion that could affect global financial markets.
Greece's Finance Minister Yanis Varoufakis wrote on his blog over the weekend, "At this, the 11th hour, stage of the negotiations, before uncontrollable events take over, we have a moral duty, let alone a political and an economic one, to overcome this impasse. This is no time for recriminations and accusations. European citizens will hold collectively responsible all those of us who failed to strike a viable solution."
While today, the European Commission President Jean-Claude Juncker called the new Greek debt proposal "good basis for progress" as reported by Reuters.
Eurogroup Chair Dijsselbloem noted on Thursday after the meeting that it is still possible to find an agreement on Greece, which could lead to an extension of the existing program that expires on June 30.
Moving ahead, later in the US session, US existing home sales data will be published at 14GMT with expectations of 5.27M additions in June against 5.04M figures booked in May.
EUR/USD Technicals
Anaylsts at Credit Suisse note, "EUR/USD has pushed up through the 1.1386 recent high to test the converging range highs at 1.1447/67 before retracing lower. We again look for selling to be found here, for a reversion back into the range. Support moves to 1.1340/30 initially, below which can see a small top for 38.2% retracement support and the accelerated uptrend at 1.1291/65. Below this latter area is needed to suggest a better high may have been seen for 1.1207/01, ahead of 1.1151/32. Below here would aim at the mid-point of the range at 1.1052/35.”