Corporate

24 Jun 2015
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Greek situation is beginning to sound like a broken record

United States Dollar: Wednesday morning saw the Dollar retract as demand weakened in anticipation of the GDP figures released later in the day, we saw GBP/USD climb to 1.58 appreciating 0.44%. This wasn’t to last and as soon as news filtered through from the Eurozone meetings the demand for safe-haven soon grew and the dollar was able to trim any early losses. We then saw the release of GDP in the afternoon, this data showed the U.S contracted less than initially estimated, posting -0.2% in line with expectations, and was an improvement on the 0.7% contraction reported last month. EUR/USD was able to recover from its sharpest one day loss of the year from the day before and was up 0.20% to 1.1220. The mortgage approval figure out of the UK yesterday morning fell short of its forecast and allowed most currencies to post gains during the London session with GBP/USD hitting a low of 1.5680, we open up today 1.5722. FOMC member Powell said on Tuesday that a rate increase is possible come September, with Powell and another FOMC member, Tarullo speaking today it will be interesting to see if they share the same views.

We expect a range today in the GBP/USD rate of 1.5650 to 1.5760

Euro: The Euro remained steady throughout most of Wednesday’s session as markets were eagerly awaiting further development from the on-going talks surrounding Greece. We soon came to realise that some of the proposals submitted by the Greek government had been rejected and counter proposals were submitted back in order to unlock bailout funds. Greece''s economy minister, George Stathakis, said "two or three" areas still needed to be addressed, but added that he was confident a deal would be reached by the time EU leaders meet on Thursday. Talks are to continue throughout the day today so we could be in for another eventful day as leaders hope to thrash out a deal. Elsewhere, we saw the release of the German IFO business climate, the figure posted 107.4 against a forecast of 108.2. This is the second month the figure has fallen but it is believed the uncertainty over the unity of the euro area is clouding the outlook so didn’t cause much movement in the Euros price. GBP/EUR traded in tight ranges yesterday opening this morning at 1.4017

We expect a range today in the GBP/EUR rate of 1.3980 to 1.4080

Aussie and Kiwi Dollars: With an extremely quiet Asian session overnight both the Aussie and Kiwi were able to advance. As a Greek deal looks more and more likely market sentiment improves, lifting the commodities. The Kiwi was able to further advance from its 5 year trough against the USD moving an extra 0.09%. GBP/AUD opens this morning at 2.0322 dropping from yesterday’s high of 2.0445 and GBPNZD at 2.2780 dropping from a high of 2.3015.

We expect a range today in the GBP/AUD rate of 2.0280 to 2.04

We expect a range today in the GBP/NZD rate of 2.27 to 2.2875

Data Releases

AUD: No data

EUR: Eurogroup Meetings, EU Economic Summit

GBP: CBI Realised Sales

NZD: Trade Balance

USD: FOMC Members Tarullo and Powell speak, Unemployment Claims, Personal Spending

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

24 Jun 2015
Share

Greek situation is beginning to sound like a broken record

United States Dollar: Wednesday morning saw the Dollar retract as demand weakened in anticipation of the GDP figures released later in the day, we saw GBP/USD climb to 1.58 appreciating 0.44%. This wasn’t to last and as soon as news filtered through from the Eurozone meetings the demand for safe-haven soon grew and the dollar was able to trim any early losses. We then saw the release of GDP in the afternoon, this data showed the U.S contracted less than initially estimated, posting -0.2% in line with expectations, and was an improvement on the 0.7% contraction reported last month. EUR/USD was able to recover from its sharpest one day loss of the year from the day before and was up 0.20% to 1.1220. The mortgage approval figure out of the UK yesterday morning fell short of its forecast and allowed most currencies to post gains during the London session with GBP/USD hitting a low of 1.5680, we open up today 1.5722. FOMC member Powell said on Tuesday that a rate increase is possible come September, with Powell and another FOMC member, Tarullo speaking today it will be interesting to see if they share the same views.

We expect a range today in the GBP/USD rate of 1.5650 to 1.5760

Euro: The Euro remained steady throughout most of Wednesday’s session as markets were eagerly awaiting further development from the on-going talks surrounding Greece. We soon came to realise that some of the proposals submitted by the Greek government had been rejected and counter proposals were submitted back in order to unlock bailout funds. Greece''s economy minister, George Stathakis, said "two or three" areas still needed to be addressed, but added that he was confident a deal would be reached by the time EU leaders meet on Thursday. Talks are to continue throughout the day today so we could be in for another eventful day as leaders hope to thrash out a deal. Elsewhere, we saw the release of the German IFO business climate, the figure posted 107.4 against a forecast of 108.2. This is the second month the figure has fallen but it is believed the uncertainty over the unity of the euro area is clouding the outlook so didn’t cause much movement in the Euros price. GBP/EUR traded in tight ranges yesterday opening this morning at 1.4017

We expect a range today in the GBP/EUR rate of 1.3980 to 1.4080

Aussie and Kiwi Dollars: With an extremely quiet Asian session overnight both the Aussie and Kiwi were able to advance. As a Greek deal looks more and more likely market sentiment improves, lifting the commodities. The Kiwi was able to further advance from its 5 year trough against the USD moving an extra 0.09%. GBP/AUD opens this morning at 2.0322 dropping from yesterday’s high of 2.0445 and GBPNZD at 2.2780 dropping from a high of 2.3015.

We expect a range today in the GBP/AUD rate of 2.0280 to 2.04

We expect a range today in the GBP/NZD rate of 2.27 to 2.2875

Data Releases

AUD: No data

EUR: Eurogroup Meetings, EU Economic Summit

GBP: CBI Realised Sales

NZD: Trade Balance

USD: FOMC Members Tarullo and Powell speak, Unemployment Claims, Personal Spending

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