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22 Jun 2015
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Greek deal looking likely

United States Dollar: The USD welcomed some good news yesterday after existing home sales rose more than expected in May to hit the highest level since 2009. The report highlighted sales increased 5.1% to 5.35 million units last month from 5.09 million in April. Analysts had expected existing home sales to rise 4.4% to 5.26 million units in May. The dollar still remains under immense pressure following last week’s dampener on the possibility of a rate rise any time soon, given the good figures on Monday it still wasn’t enough to prevent the dollar from declining against the euro, EUR/USD was up 0.42% to 1.1398, off lows of 1.1313 hit earlier in the session The pound was lower, with GBP/USD down 0.28% to 1.5842.

We expect a range today in the GBP/USD rate of 1.5720 to 1.5830

Euro: Yesterday was tipped to be the 'black Monday equivalent for the eurozone, this could have gone one way or the other. With Greece hanging on the verge of an exit from the European Union its new proposals had to spark an interest in the EU officials. Its still early days but after the eurogroup meetings yesterday it appears there is light at the end of the tunnel. In a-cash for reform deal the EU officials welcomed the new plans that include higher taxes and moves to curtail early retirement. Jeroen Dijsselbloem, chairman of the Eurogroup of 19 euro zone finance ministers, described the new Greek document as comprehensive and "a basis to really restart the talks" but said talks in the next days would show whether the numbers added up with the aim to get a deal in place by the end of this week. Theres a long way to go but the recent news has provided some much needed rest for the signal currency, as Greek stocks soared EUR/GBP was able to appreciate by 0.66% to trade at 0.7194. With no economic events for the pound yesterday it was left vulnerable by events elsewhere and both GBP/EUR and GBP/USD lost ground. The London session has opened up with GBP/EUR back above 1.40 as markets become apprehensive a deal will be concluded by the June 30th deadline.

We expect a range today in the GBP/EUR rate of 1.3935 to 1.4080

Aussie and Kiwi Dollars: During the Asian session we had the release of the Housing price index for the Australian Dollar, forecasted at 2.2% it posted a decline at 1.6%. Whilst a disappointing figure the Aussie held steady against its US counterpart. Elsewhere Chinese Manufacturing rose to 49.6 in June from 49.2 the previous month, remaining in contraction territory for the third consecutive month. AUD/USD hit 0.7694 during late Asian trade, the session low; the pair subsequently consolidated at 0.7732 and we open up the London session with GBP/AUD at 2.0425. The New Zealand dollar also held steady and very close to five year lows against the Greenback, against the Pound we open this morning at 2.3038.

We expect a range today in the GBP/AUD rate of 2.0360 to 2.0510

We expect a range today in the GBP/NZD rate of 2.2910 to 2.3060

Data Releases

AUD: No data

EUR: French and German Manufacturing

GBP: No Data

NZD: No Data

USD: Core Durable Goods orders, FOMC member Powell Speaks

If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex

22 Jun 2015
Share

Greek deal looking likely

United States Dollar: The USD welcomed some good news yesterday after existing home sales rose more than expected in May to hit the highest level since 2009. The report highlighted sales increased 5.1% to 5.35 million units last month from 5.09 million in April. Analysts had expected existing home sales to rise 4.4% to 5.26 million units in May. The dollar still remains under immense pressure following last week’s dampener on the possibility of a rate rise any time soon, given the good figures on Monday it still wasn’t enough to prevent the dollar from declining against the euro, EUR/USD was up 0.42% to 1.1398, off lows of 1.1313 hit earlier in the session The pound was lower, with GBP/USD down 0.28% to 1.5842.

We expect a range today in the GBP/USD rate of 1.5720 to 1.5830

Euro: Yesterday was tipped to be the 'black Monday equivalent for the eurozone, this could have gone one way or the other. With Greece hanging on the verge of an exit from the European Union its new proposals had to spark an interest in the EU officials. Its still early days but after the eurogroup meetings yesterday it appears there is light at the end of the tunnel. In a-cash for reform deal the EU officials welcomed the new plans that include higher taxes and moves to curtail early retirement. Jeroen Dijsselbloem, chairman of the Eurogroup of 19 euro zone finance ministers, described the new Greek document as comprehensive and "a basis to really restart the talks" but said talks in the next days would show whether the numbers added up with the aim to get a deal in place by the end of this week. Theres a long way to go but the recent news has provided some much needed rest for the signal currency, as Greek stocks soared EUR/GBP was able to appreciate by 0.66% to trade at 0.7194. With no economic events for the pound yesterday it was left vulnerable by events elsewhere and both GBP/EUR and GBP/USD lost ground. The London session has opened up with GBP/EUR back above 1.40 as markets become apprehensive a deal will be concluded by the June 30th deadline.

We expect a range today in the GBP/EUR rate of 1.3935 to 1.4080

Aussie and Kiwi Dollars: During the Asian session we had the release of the Housing price index for the Australian Dollar, forecasted at 2.2% it posted a decline at 1.6%. Whilst a disappointing figure the Aussie held steady against its US counterpart. Elsewhere Chinese Manufacturing rose to 49.6 in June from 49.2 the previous month, remaining in contraction territory for the third consecutive month. AUD/USD hit 0.7694 during late Asian trade, the session low; the pair subsequently consolidated at 0.7732 and we open up the London session with GBP/AUD at 2.0425. The New Zealand dollar also held steady and very close to five year lows against the Greenback, against the Pound we open this morning at 2.3038.

We expect a range today in the GBP/AUD rate of 2.0360 to 2.0510

We expect a range today in the GBP/NZD rate of 2.2910 to 2.3060

Data Releases

AUD: No data

EUR: French and German Manufacturing

GBP: No Data

NZD: No Data

USD: Core Durable Goods orders, FOMC member Powell Speaks

If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex