- China PBOC - To help China Sec Finance Corp get sufficient liquidity, guard against systemic regional financial risks, closely monitor stock market.
- China Sec Finance Corp - Panic noted in market, big increase in irrational sales, closely monitoring situation, to provide adequate liquidity for brokerages, step up purchases of medium-small caps.
- China Financial Futures Exchange ups margins, deposit ratios for short positions in CSI500 index futures, deposit ratios from 10% to 20% today, to 30% from tomorrow.
- China insurance regulator ups limit for insurer investments in blue chips.
- Euro Zone gives Greece until Sunday for debt deal.
- German Chancellor Merkel - ECB to keep Greek banks afloat till Sunday.
- Japan May current account surplus trln, trln surplus eyed.
- MoF June flow data - Japanese buy net trln foreign stocks, sell trln bonds, Y29.4 bln bills; foreign investors sell net Y275.9 bln Japanese stocks, trln bonds, trln bills.
- Japan June outstanding bank loans +2.5% y/y, trln, May rev +2.7%.
- NZ OBEGAL to end-May NZ$1.176 bln, +NZ$609 mln vs forecast, net debt 25.3% of GDP, NZ$60.36 bln.
- (1500 ET/1900 GMT) US May consumer credit, $18.5 bln eyed; last $20.54 bln.
Key Events Ahead
- N/A Paris finance conference, various speakers (till tomorrow).
- N/A BoE MPC begins two-day meeting, Greece bln 26-week bill auction.
- (0300 ET/0700 GMT) Buba Dombret speech at Frankfurt symposium.
- (0300 ET/0700 GMT) BoI Gov Visco, Italy EconMin Padoan speech at Rome banking conference.
- (0400 ET/0800 GMT) ECB/Austria CB Nowotny presser on latest financial stability report.
- (0530 ET/0930 GMT) Germany E3 bln zero% 2017 Schatz auction.
- (0730 ET/1130 GMT) UK ChancExch Osborne presents '15 post-election budget.
- (0830 ET/1230 GMT) US TsySec Lew at Washington, DC Brookings Institute event.
- (1400 ET/1800 GMT) FOMC June policy meeting minutes.
- (1400 ET/1800 GMT) SF Fed Williams speech at Los Angeles conference.
FX Recap
EUR/USD is supported around 1.1000 levels and currently trading at 1.1010 levels. It has made intraday high at 1.1016 and low at 1.0973 levels. On Tuesday, the US dollar index, which measures the currency's strength against a set of six major peers, rose to the highest level in a month. The situation in Europe has only been getting worse, with each passing day increasing the odds of a Greek exit from the euro area, which could potentially lead to a renewed crisis in other periphery nations that could crush the struggling economy. European leaders will hold what is believed to be the final make-or-break summit next Sunday in order to determine Greece's fate as a member of the Euro zone. Initial support is seen around at 1.0914 and resistance at 1.1171 levels.
USD/JPY is supported around 122.00 levels and posted a high of 122.55 levels. It has made intraday low at 121.96 and currently trading at 122.55 levels. The yen failed to hold early morning gains amid Greece's uncertain future as the greenback found some ground on technical support, while the US trade deficit stabilized in May. The major erased gains seen in the last US session and fell back in red as the latest Greece developments coupled with China shocker spurred safe-haven bids for the Japanese currency. Better than expected current account data from Japan also bolstered the yen further. Japan's current account reached a surplus of trillion, better than the trillion seen. Looking ahead, the Federal Reserve is scheduled to publish minutes from its most recent meeting on Wednesday. Additionally, Fed Chair Janet Yellen is set to speak on Friday. Near term resistance is seen at 124.57 and support is seen at 121.48 levels.
GBP/USD is supported below $1.5500 levels. It made an intraday high at 1.5464 and low at 1.5426 levels. Pair is currently trading at 1.5438 levels. The British pound remained trading with losses following a mixed outcome of UK industrial and manufacturing production data for May. Today UK will release Annual budget. Initial support is seen at 1.5367 and resistance is seen around 1.5737 levels.
USDCHF is supported above 0.9400 levels and trading at 0.9451 levels and made intraday low at 0.9449 and high at 0.9475 levels. Pair is trading on flat bias as Switzerland's unemployment rate released with Flat numbers at 3.3%. Today is data thin calendar for Switzerland. Market will eye on FOMC meeting minutes for the further direction. Near term support is seen at 0.9341 levels and resistance is seen at 0.9500 levels.
AUD/USD is supported around 0.7400 levels and trading at 0.7412 levels. It has made intraday high at 0.7458 levels and low at 0.7390 levels. The Australian currency continued the downward trend and traded at its 6-year low as US dollar bulls woke up in fighting mood ahead of the FOMC latest minutes set to be released later in the US session. The situation in Greece will also be highly watched. Following yesterday's talks, EU President Donald Tusk said the final deadline to reach a deal ends this week. Initial support is seen at 0.7360 and resistance at 0.7647 levels.
