Market Roundup
- Merkel reiterates last offer from creditors was very generous
- ECB maintains ELA for Greek banks, collateral for ELA tightened
- Greek banking source says haircut on ELA security increased by about 10% on some collateral
- ECB haircut for ELA will not impact banks' everyday business due to gap b/w level of ELA & collateral
- Greece's Tsakalotos to be sworn in as finance minister
- Greek party leaders say aid deal must address debt sustainability
- Greece to extend bank holiday for at least a few more days (Bankers)
- French, German leaders urge Greece to offer quick proposals
- Political leaders back Tsipras in aid talks (Coalition partner)
- Germany's Gabriel - Greece needs to change position to stay in euro
- Fitch: an unplanned reactive process could not be orderly & would inflict severe damage on Greece's economy
- WTI tumbles more than 7%
- Bank of Canada survey shows weak oil still hurting business outlook
- US Markit Comp Final PMI Jun 54.6, 54.6-prev
- US ISM N-Mfg Empl Idx Jun 52.7, 55.3-prev
- US ISM N-Mfg Price Pd Idx Jun 53, 55.9-prev
- Brazil CB f/c '15 inflation to 9.04 from 9%, '15 GDP growth to -1.5 From -1.49%, high inflation/low growth continue to dog Brazil
Looking Ahead - Economic Data (GMT)
- 22:00 NZ NZIER Confidence* Q2 23.00%-prev
- 22:00 NZ NZIER QSBO Capacity* Q2 92.30%-prev
- 23:30 AU AIG Construction Index Jun 48-prev
- 23:50 JP Foreign Reserves Jun 1245.80b-prev
Looking Ahead - Events, Other Releases (GMT)
- 04:30 AU RBA Cash Rate* Jul f/c 2.00%, 2.00%-prev
Currency Summaries
EUR/USD
EUR/USD is supported above 1.1020 levels and currently trading at 1.1053 levels. It hit intraday high at 1.1090. and low at 1.020 levels. The pair started to recover from 1.002 in the early US session, and reached high at 1.089. Euro is trading under pressure as risk begins to sour from ECB headlines. ECB said the governing council is determined to use all the instruments available within its mandate to help Greece. France Hollande and German's Merkel held talks with respect to vote of Greek's and noted that the doors are still open for new Greece proposals. All eyes will now be on Euro Zone leader's meeting today. who will discuss Greek referendum. Initial support is seen around 1.000 and resistance is seen around 1.1064 levels.
USD/JPY
USD/JPY is supported above 122.30 levels and posted a high of 122.90 levels. It has made session low at 122.30 and currently trading at 122.55 levels. Economic data released form the US showed Market Composite PMI (Jun) at 54.6, Service PMI (Jun), ISM Non-Manufacturing PMI (Jun) at 56.0 against forecast of 56.2. The pair lost its bullish momentum at 122.91 and fell back towards 122.30 session lows. ECB increased haircuts, but kept ELA levels steady at pre Tuesday's Euro Group meetings.
GBP/USD
GBP/USD is supported above $1.5540 levels. It hit intraday high at 1.5628, and low at 1.5532 levels. Pair is currently trading at 1.5556 levels. The pair strongly pulled back from 1.5330 to reach 1.5627 intraday high. The ECB said it is determined to use all the instruments available within its mandate, and to bailout Greece. ECB has decided to leave the Emergency Assistance Liquidity (ELA) ceiling for Greek banks unchanged at €89 billion. Yanis Varoufakis resigned from his position, creating chaos in the already troubled markets. Meanwhile a new finance minister, Euclid Tsaklotos, took over Yanis Vardoulakis seat at the negotiating table. Greek turmoil may lead to a dovish BOE/FED in near term, BOE meets on Thursday. To the downside Immediate support lies at 1.5561, on the flipside immediate resistance can be found at 1.5630.
USD/CAD
USD/CAD is supported above 1.2562 levels. It hit session high at 1.5664 and session low at 1.5612 levels. Pair is currently trading at 1.2649 levels. The pair pulled back from 1.2610 to reach 1.5662 intraday high. The US dollar continues to be stronger against CAD, due to safe heaven tag attached to USD amid Greece crisis, and also Crude oil prices fell more than 4% to reach $56.73 per barrel today. Economic data released showed IVEY PMI (Jun) printed slightly better figures at 55.9 against forecast of 54.0, Market Composite PMI (Jun) at 54.6, Service PMI (Jun), ISM Non-Manufacturing PMI (Jun) at 56.0 against forecast of 56.2. Immediate support can be seen at 1.2605, on the downside. To the upside, resistance can be seen at 1.2667
