15 Jun 2015

GBP/USD trades up through 1.56 despite negative Greece headlines

United States Dollar: GBP/USD has pushed gradually higher over the last 24 hours, this despite ongoing and growing concerns for Greece’s future in the Eurozone. The pair dipped briefly below 1.55 yesterday morning, but helped by weaker than expected U.S. economic data released yesterday including the Empire States Manufacturing Index, Capacity Utilization Rate and Industrial Production, it has gone on to trade through 1.56 and opens in London at 1.5630. There was no UK economic data released yesterday but UK CPI is up this morning at 9:30 and with this key piece of data due, it’s been somewhat surprising that GBP/USD has gained as much as it has.

We expect a range today in the GBP/USD rate of 1.5490 to 1.5645

Euro: The headlines again were dominated by Greece yesterday, that of which haven’t exactly been positive. The Greek PM has accused its creditors of being politically motivated and this was followed by come-backs by the likes of European Commissioner Oettinger who said that Greece will be in a state of emergency from 1st July without any agreement with its creditors. Despite all of this EUR/USD has rallied back above 1.13 this morning, this after starting the day yesterday down at 1.1190 – the weak US data has helped. Meanwhile, GBP/EUR is steady at 1.38 but it might not continue to trade steadily as the Greece situation develops.

We expect a range today in the GBP/EUR rate of 1.3755 to 1.3850

Aussie and Kiwi Dollars: Both AUD/USD and NZD/USD are up on the day from yesterday, tracking both GBP/USD and EUR/USD higher. The RBA minutes were released overnight but there were no surprises within. The central bank called for a lower AUD and said that policy should remain accommodative. There wasn’t any data released out of New Zealand. GBP/AUD and GBP/NZD have therefore traded a fairly narrow range over the last 24 hours and open in London at 2.0155 and 2.2355 respectively.

We expect a range today in the GBP/AUD rate of 2.0070 to 2.0240

We expect a range today in the GBP/NZD rate of 2.2250 to 2.2460

Data Releases

AUD: MI Leading Index m/m

EUR: German ZEW Economic Sentiment, Employment Change q/q

GBP: CPI, CB Leading Index m/m

NZD: GDT Price Index, Current Account

USD: Building Permits, Housing Starts

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