Market Roundup
- US Existing Home Sales May 5.35m, (consensus 5.25m, previous 5.09m)
- US Exist. Home Sales % Chg May 5.1%, (consensus 4.2%, previous -2.3%)
- Eurozone June consumer confidence flash decrease to -5.6 (consensus -5.80, previous -4.60)
- Mexico Apr retail sales mm decrease to -0.3 % (previous 0.20 %)
- Brazil May current account increase to -3.366 bln $ (consensus -4.700 bln $, previous -6.901 bln $)
- Brazil's econ outlook worsens in BCB poll, '15 inflation at 8.97%, GDP growth -1.45%
- Germany's Merkel: No basis for a decision on Greece on Monday
- France's Hollande New Greek proposal is better, but issues remain
- EU's Moscovici says still work to be done on Greek proposals
- EU's Tusk says euro zone leaders have responsibility to avoid worst case scenario of a chaotic Grexit
- Eurogroup's Dijsselbloem says impossible to have final assessment Monday
- No need for Greek govt measures on banks at this stage (Official)
- Weekly ECB sovereign bond buying rises by EUR 12 bln, (to EUR 182b from 170b)
- BOE's Cunliffe sees Britain's reserve of spare labour running out, productivity rising in '16/'17
- (2130 ET/ 0130 GMT) Australia Home Price Index Q1 (consensus 2.3%, previous 1.9%)
- (2135 ET/ 0135 GMT) Japan Manufacturing PMI Flash Jun (previous 50.9)
- (2145 ET/ 0145 GMT) China HSBC Mfg PMI Flash Jun (consensus 49.4, previous 49.2)
- No Significant Events
FX Recap
EUR/USD: Markets awaiting the outcome of the EU Leaders Summit. It is worth noting however, that EU officials have already discarded the likeliness of clinching a deal tonight, postponing any other decisive meeting for the upcoming days. Euro remains in a volatile mood on Monday, now trading back in the 1.1340 area, down 0.06% on the day. In Tuesday's docket in the euro region manufacturing and services PMIs prelims for the current month will be in focus, while Durable Goods Orders, New Home Sales and Markit's Manufacturing PMI will be watched across the Atlantic. Immediate support lies at 1.1312 (low Jun 22) followed by 1.1300 (psychological level) and then 1.1206 (low Jun 17). On the flip side resistances are at 1.1411 (high Jun 22), 1.1421 (high Jun 18) and 1.1450 (high May 18). Option expiries for Tuesday 23 June: 1.1400 (757M)
USD/CHF: Swissy is modestly down against the US dollar on Monday. USD/CHF fell to test last week lows that lie slightly above 0.9140 several times but it rebounded. During the last few hours USD/CHF is trading around the 0.9220/25 area where it has been capped. Currently trades at 0.9215, up 50 pips from Friday's closing price. Key resistance is located around the 0.9250 zone. On the downside support lies around 0.9140 and then 0.9070 (May lows).
USD/JPY is rose further during the American session, extending its 100-pip rally from the 122.55 level priced in the Asian session moving away from key 122.40/45 support zone. The pair is currently trading at 123.38, the strongest level since last Thursday, up 0.57% on the day. Rising government bond yields favored the upside in the USD/JPY. Resistances are located at 123.50, 123.60 and 123.80. To the downside, supports are at 123.00, 122.80 and 122.55.
AUD/USD: Aussie has come under selling pressure and is in supply regardless of last week's dovish FOMC statement by Fed. RBA officials sighting the currency as too strong still adds further pressure. AUD/USD is currently trading at 0.7721 with high of 0.7798 and a low of 0.7720. Markets await HSBC Chinese Manufacturing PMI's are up after Aussie home sales tomorrow for further direction. Option expiries for Tuesday 23 June: 0.7700 (1.16BLN), 0.7650 (653M)
NZD/USD: Kiwi remains among the weakest currencies in the market weakened by change in direction of RBNZ's monetary policy stance. NZD/USD is falling for the eight time, out of the last ten trading days. The pair broke below 0.6870 and bottomed at 0.6861 during the American session, hitting the lowest level since July 2010. At the time of writing NZD/USD is trading a 0.6846 with immediate support on the downside at 0.6810/20. On the opposite direction, the area around 0.6900 has now become a resistance followed by 0.6930 (daily high) and 0.7010.
