- Spot Gold falls more than 3% to lowest since March 2010.
- Spot Platinum down nearly 5%, Palladium drops over 3%.
- PBOC Sets Yuan Mid-Point at 6.1197 /Dlr Vs Last Close 6.2095.
- German Finance Ministry says German Economy likely Grew by around 0.3% in Q2.
- Germany's Merkel- Schaeuble's Proposal for Temporary Grexit was on table but we chose another Option.
- Germany's Merkel- Capital Controls are still in Place in Greece, That's not a Normal Life so have to Negotiate Quickly.
- Germany's Merkel says, Regarding Speculation about Possible Schaeuble Resignation, No one has asked me to be relieved of their Duties.
- Merkel- Only Option is to Work with Greece or there will be Chaotic Situation.
- Merkel- We'll negotiate Hard with Greece; Make Sure Agreements are implemented.
- Merkel- Won't Speculate on Plan B for Greece Two Days after Bundestag Vote.
- Germany's Merkel- Can't have a Classic Haircut in Currency Union but this is Possible outside Currency Union.
- Merkel- We Can Talk about Changing Maturities of Debt and Lowering Interest for Greece after First Successful Review of the Bailout to be negotiated.
- Germany's Merkel- EZ has become much Robust; Portugal, Ireland Spain and Cyprus are through the Toughest Times.
- China V/Finmin Zhu Guangyao says China must Learn Lessons from Stock Market Rout, To Focus on Supervision; Quota of 2 Trillion Yuan for Debt Swap Program Should be Sufficient for now.
- China home prices rise for second month in a row.
- China June home prices +0.4% m/m; -4.9% y/y.
- (0200 ET/0600 GMT) Germany Producer Prices previous 0.0%.
- (0400 ET/0800 GMT) EZ Net Investment Flow.
- (0400 ET/0800 GMT) EZ Current Account NSA previous at 22.3B.
Key Events Ahead
- (0100 ET/0500 GMT) Netherlands to Sell Up to EUR2Bln 161-Day Bills.
- (0450 ET/0850 GMT) France to Sell Bills.
FX Recap
EUR/USD is supported around 1.0800 levels and currently trading at 1.0825 levels. It has made intraday high at 1.0842 and low at 1.0819 levels. The USD keeps its gains vs. the Euro at the end of the week, with EUR/USD in a consolidative pattern around 1.0900. While the Greek crisis is not going to completely disappear from the radar any time soon, there is definitely a loud sigh of relief in Europe. In the week ahead, easy on macroeconomic data, BoE Minutes and flash manufacturing and services PMIs from Germany, France and the whole euro zone will be drawing the attention of traders. Initial support is seen around at 1.0789 and resistance at 1.0896 levels.
USD/JPY is supported around 124.00 levels and posted a high of 124.18 levels. It has made intraday low at 124.00 and currently trading at 124.14 levels. The greenback edged lower versus the yen this session on the back of profit-taking after the buck touched fresh six week highs against it major competitors backed by Fed Chair Yellen's hawkish comments and the recent two back-to-back sessions of upbeat US macro data releases last week. Japanese banks will be closed today in observance of Marine Day. Near term resistance is seen at 124.57 and support is seen at 120.63 levels.
GBP/USD is supported around $1.5600 levels. It made an intraday high at 1.5610 and low at 1.5582 levels. Pair is currently trading at 1.5595 levels. The week ahead in the UK does kick off with the public finances release on Tuesday (more on this later), but market participants will sharpen their focus more on the MPC minutes due Wednesday, and retail sales figures out the following day. Initial support is seen at 1.5413 and resistance is seen around 1.5734 levels.
NZDUSD is supported above 0.6500 levels and trading at 0.6563 levels and made intraday low at 0.6503 and high at 0.6574 levels. The Kiwi bulls cheered New Zealand PM John Key's comments on the exchange rate and pushed the pair to a session high of 0.65574. PM John Key indirectly hinted at the possibility of Kiwi being oversold by stating that the NZD has fallen faster-than-expected. The sharp weakness in Gold may have pushed commodity pack and other major currencies lower against the USD. Initial support is seen at 0.6465 and resistance at 0.6600 levels.
AUD/USD is supported around 0.7350 levels and trading at 0.7360 levels. It has made intraday high at 0.7380 levels and low at 0.7326 levels. Pair has opened up further downside potential, now en-route to 0.73 levels, after absorption of bids through 0.7350, with both, broad-based USD strength and a collapse in Gold creating the perfect bearish storm. There is little in the way of decent support until 0.7185. Weak commodities weighing on AUD sentiment as terms of trade deteriorate. Initial support is seen at 0.7325 and resistance at 0.7647 levels.
