- GBP/USD sharply lower after PMI misses forecasts. Trading from 1.5646 to 1.5749 levels.
- Euro boosted on Greek deal hopes. From 1.1095 to 1.1172 but easing again expected.
- EUR/GBP rallied to 0.7130. EUR/CHF up to 1.0472.
- Tsipras will accept creditor conditions, only handful of minor changes.
- Schaeuble, Tsipras second letter has achieved no clarity.
- EZ source Tsipras letter contains elements ministers will find hard to accept.
- Euro group reschedules Greece meeting to 15:30.
- Italian Fin min- Euro currency becomes 'different animal' if Greece exits EZ.
- French Finance minister- Obviously incredibly complicated to get deal with Greece.
- BOE Carney- Possible that low interest rates environment will continue for "quite some time".
- EZ June Markit Manufacturing final PMI 52.5 vs previous 52.5. 52.5 expected.
- UK Markit/CIPS Jun Manufacturing PMI 51.4 vs previous 51.9 revised, 52.5 expected.
- Switzerland June Manufacturing PMI 50.0 vs previous 49.4. 49.9 expected.
- (0815 ET/1215 GMT) US ADP National Employment Report (consensus +218k, previous +201k).
- (0945 ET/1345 GMT) US Markit Manufacturing PMI (final June) (flash 53.4).
- (1000 ET/1400 MGT) US Construction Spending (May) (consensus +0.5% m/m, previous +2.2%m/m).
- (1000 ET/1400 GMT) US ISM Manufacturing PMI (June) (consensus 53.2, previous 52.8).
- (1030 ET/1430 GMT) EIA petroleum statistics.
- (1400 ET/1800 GMT) Senior Credit Officer Opinion Survey on Dealer Financing Terms.
- N/A Total Vehicle Sales (June) (consensus 17.20 mn SAAR, previous 17.80 mn SAAR).
- N/A Domestic Car Sales (June) (consensus 5.85 mn SAAR, previous 5.87 mn SAAR).
- N/A Domestic Light Truck Sales (Jun) (consensus 8.11 mn SAAR, previous 8.36 mn SAAR).
Key Events Ahead
- (1145 ET/1545 GMT) Fed Trade operation 30-year Fannie Mae / Freddie Mac (max $2.200 bn).
FX Recap
EUR/USD is supported around 1.1100 levels and currently trading at 1.1107 levels. It has made intraday high at 1.1170 and low at 1.1094 levels. Greece has missed a crucial debt repayment of €1.6 billion to the International Monetary Fund as the June 30 deadline of 6PM Washington time has passed. Greece's Prime Minister Alexis Tsipras will accept the creditors' bailout conditions proposed last weekend with some minor changes, according to a letter he sent late on Tuesday night. As per the latest reports, Greek PM Alexis Tsipras sent a letter to the heads of the European Commission (EC), International Monetary Fund (IMF) and European Central Bank (ECB) requesting an extension of Greece's bailout program that expired on Tuesday June, 30 and proposed a new € 29.1 billion rescue package. According to the letter, the Greek government will accept all the reforms of his country's VAT system with a special 30% discount for Greek islands. Euro zone finance ministers are due to discuss Greece's new proposal in a teleconference session on Wednesday evening. Initial support is seen around 1.1067 and resistance is seen around 1.1218 levels. Option expiries are at 1.1100 (1.2BLN), 1.1200 (1.4BLN), 1.1250 (531M).
USD/JPY is supported around 123.00 levels and posted a high of 123.00 levels. It has made intraday low at 122.34 and currently trading at 122.90 levels. Pair trades modestly flat as the JPY bulls remain in charge supported by impressive Japanese factory data released in early Asian hours. The Bank of Japan's Tankan Manufacturing Index rose to 15 in the June quarter from 12 in the March quarter, according to a release on Wednesday, coming in stronger than the market forecast of an unchanged reading. Near term resistance is seen at 124.57 and support is seen at 121.48 levels. Option expiries are at 121.90 (330M), 122.35 (860M), 123.00 (410M).
GBP/USD is supported below $1.5700 levels. It made an intraday high at 1.5729 and low at 1.5639 levels. Pair is currently trading at 1.5645 levels. Sterling fell against the dollar and the euro on Wednesday, after data showed British manufacturing growth unexpectedly slowed to its weakest rate in more than two years in June. Sterling fell to $1.5647, down 0.4 percent on the day, from around $1.5710 beforehand. The euro inched up to 71.15 pence, having traded at 70.68 pence before the data, and firmer on the day. The manufacturing PMI for June in the UK decreased to 51.4 from 51.9 in May, Markit informed on Wednesday. The pair has dropped further after Governor Mark Carney argued that the central bank has contingency plans in order to deal with t he Greek crisis, while added that an eventual contagion to other EU members is lower than previous years. He also stressed that UK's household debt is diminishing and economic growth remains solid. Furthermore, Carney said that 'Grexit' remains a possibility. Initial support is seen at 1.5600 and resistance is seen around 1.5737 levels.
USD/CHF is supported above 0.9400 levels and trading at 0.9410 levels and made intraday low at 0.9341 and high at 0.9421 levels. Today Switzerland released manufacturing PMI data at 50.00 with market expectations only vs 49.4 previous release. CHF is depreciating after the data released and now market will eye on US data for the further direction of the parity. Near term support is seen at 0.9279 levels and resistance is seen at 0.9428 levels.
AUD/USD is supported above 0.7700 levels and trading at 0.7704 levels. It has made intraday high at 0.7737 levels and low at 0.7687 levels. The Australian dollar was lifted against its US counterpart and remained above the $0.77 threshold as PMI data from China showed the country's manufacturing sector continued to expand in June. Apart from the Chinese data, building approvals in Australia pointed to solid growth in the country's construction industry as they continued to rise at a double-digit pace in May. Building consents were up 2.4% month-on-month in May after sliding a revised 5.2% in April. Initial support is seen at 0.7568 and resistance at 0.7838 levels. Option expiries are at 0.7550 (475M), 0.7600 (500M).
