- EUR/USD Flat through Asia, bid early Europe and offered into NY.
- European Union won't negotiate on Greece at Thursday summit, want deal Wednesday.
- Greek official says creditors didn't accept Greek proposals.
- Tsipras facing mutiny from Syriza hardliners.
- Germany June IFO business climate 107.4 vs 108.5 previous, 108.1 expected.
- Germany Jun IFO Current/Condition 113.1 vs 114.3 previous, 114.1 expected.
- Germany June IFO Expectations 102 vs 103 previous, 102.5 expected.
- UK May mortgage approvals highest since March 2014.
- Russia to tighten import rules after sanctions.
- France President Hollande feared Grexit back in '12.
- BoE MPC Weale - Prepare for an UK rate rise by August.
- BOJ loan support program to financial institutions to hit Y30 trln.
- N/A Revised Building Permits May as reported 1.275m.
- (0700 ET/1100 GMT) US MBA mortgage application indices.
- (0830 ET/1230 GMT) US Real GDP final Q1 consensus -0.2% q/q, previous -0.7%.
- (0830 ET/1230 GMT) Real Final Sales final Q1 consensus -0.6% q/q, previous -1.1%.
- (0830 ET/1230 GMT) US Core PCE Deflator final Q1 previous +0.8%.
- (1030 ET/1430 GMT) EIA petroleum statistics.
Key Events Ahead
- Heads of IMF, ECB, ESM, EU Said to Meet Wednesday in Brussels.
- (1145 ET/1545 GMT) Fed Trade ops 30-yr F.Mae/Fr.Mac max $2.000 bn.
FX Recap
EUR/USD is supported around 1.1200 levels and currently trading at 1.1198 levels. It has made intraday high at 1.1233 and low at 1.1153 levels. Greece remains at the top of the agenda in today's Euro group meeting to be held in Brussels, with Greek PM Tsipras expected to previously meet with Juncker, Draghi and Lagarde. ECB is extending its emergency funding to the Greek banks under its ELA mechanism. The German IFO Business Climate for June ticked lower from 108.5 to 107.4, while the expectations gauge dropped to 102.0 from 103.0 in May. Weak surveys had been expected and confirmed the deteriorating economic situation in Germany. Pair remained unaffected after the latest IFO surveys and volatility was only mild after yesterday's slump. Later in the day, the final revision of US GDP is due, with economic output expected to improve from -0.7% to -0.2% quarterly. Initial support is seen around 1.1050 and resistance is seen around 1.1375 levels. Option expiries are at 1.11250-40 (1BLN), 1.1180 (644M), 1.1200 (1.36LN).
USD/JPY is supported below 124.00 levels and posted a high of 124.08 levels. It has made intraday low at 123.70 and currently trading at 123.83 levels. The dollar-yen pair rose to a new four day high at 124.19 on Tuesday after US new home sales data jumped to fresh 7-yr highs while the FOMC voting member Jerome Powell's speech also supported the rally in the USD. Today pair trades in a flat range, with Bank of Japan minutes helping little to lift the yen. While a retreat in the greenback on profit-taking keeps the pair largely subdued. The major remained calm by eventless BOJ minutes which echoed the same news that the QQE is having its intended effects and the BOJ will adjust policy if needed. Traders are keeping an eye on the third estimate of the first-quarter US GDP growth scheduled later today. Near term resistance is seen at 124.57 and support is seen at 122.10 levels. Option expiries are at 123.50 (280M), 123.90-124.00 (282M), 125.00 (232M).
GBP/USD is supported above $1.5700 levels. It made an intraday high at 1.5801 and low at 1.5722 levels. Pair is currently trading at 1.5757 levels. Speculation that Bank of England could yet raise interest rates this year crept back into UK money markets on Wednesday, pushing sterling to its strongest against a basket of currencies since the months before the 2008 financial crisis. Sterling gained 0.4 percent to $1.5796 GBP, pushing the Bank of England's trade-weighted basket to 93.5; it's highest since April 2008. It was little changed at 71.02 pence per euro, having hit a four-week high of 70.805 pence on Tuesday. The pair retains gains, although failed to hold above 1.58 barriers as most traders viewed the rally as excessive while less than estimates rise in mortgage approvals in UK also kept a lid on the major. In May, the number of mortgage approvals rose to 42,530, up from 42,020 in April, but less than estimated. The pair also remains supported on the back of hawkish comments from Bank of England (BOE) policy maker Weale, advocating for a rate hike on tightening labour market in the UK. Market shifts their attention towards Greece and Q1 GDP figures from the US for further momentum. Initial support is seen at 1.5624 and resistance is seen around 1.5835 levels.
USD/CHF is supported above 0.9300 levels and trading at 0.9330 levels and made intraday low at 0.9280 and high at 0.9344 levels. Today Switzerland released UBS consumption indicator data to 1.73 m/m, previous at 1.67 m/m. Now market will eye on US final GDP data due for release later today. Near term support is seen at 0.9113 levels and resistance is seen at 0.9383 levels.
AUD/USD is supported above 0.7700 levels and trading at 0.7737 levels. It has made intraday high at 0.7769 levels and low at 0.7711 levels. Gains in commodity prices overnight likely provided some support to the commodity-based currencies, with both Brent and WTI futures climbing more than 1% each. Metals and base commodity markets are also broadly higher. There is little from data calendar today, market will eye on US GDP data for the further directions. Initial support is seen at 0.7568 and resistance at 0.7838 levels. Option expiry is at 0.7820 (230M).
