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25 Jun 2015
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Investors on the side-lines ahead of crucial weekend Greek negotiations

United States Dollar: It was a relatively quiet day of trading as investors focus remains on the on-going Greek debt negotiations. For the greenback we had the unemployment claims number released, it showed the number of individuals filing for unemployment increased by 3,000 to 271,000, an increase of 4,000 was forecast and the figure still remained at levels consistent with a tightening labor market. Following this was the consumer spending number, posting 0.9% it was the highest level in almost 6 years. The drop in Oil prices and with the job markets improving consumers are beginning to spend the extra cash, the upcoming quarter could be decisive. The 2 FOMC members we had speaking yesterday failed to match the comments from Powells speech on Tuesday on a rate rise, this passed without any price change. GBP/USD opens up this morning at 1.5721 and with a light day today we can expect markets to remain flat.

We expect a range today in the GBP/USD rate of 1.5680 to 1.5750

Euro: Talks between Greece and its creditors yesterday remained inconclusive, central leaders are nearing the deadline date to unlock additional funds and if an agreement is not reached Greece risks going into default, resulting in an exit from the Eurozone. Talks are to resume again on Saturday and after yesterday’s meeting German Chancellor Angela Merkel went on to say “Saturday has taken on a decisive significance, because time is short,” placing more pressure on the single currency. Euro traded flat yesterday and against the pound we saw a depreciation of only 0.3%. With the markets shut over the weekend any effects from the weekend meeting won’t be felt until Monday. GBP/EUR opens up today at 1.4044

We expect a range today in the GBP/EUR rate of 1.3990 to 1.4080

Aussie and Kiwi Dollars: With another quiet Asian session overnight the Aussie and Kiwi erased any gains we experienced from the previous day. The only release was from New Zealand, its May trade balance showed a surplus of NZ$350 million, much better than the NZ$100 million deficit seen previous. It was unable to shift the price though as the Greek concerns spills into the commodities and GBP/NZD opens up at 2.2888 this morning. The economic calendar is much busier next week for the Asian markets and we will be looking to see if the GBP/AUD can sustain a level above 2.00, we open up this morning at 2.0408

We expect a range today in the GBP/AUD rate of 2.0350 to 2.0450

We expect a range today in the GBP/NZD rate of 2.2790 to 2.2890

Data Releases

AUD: No data

EUR: M3 Money supply, EU Economic Summit

GBP: BOE Gov Carney speaks

NZD: No Data

USD: Revise UoM Consumer Sentiment

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

25 Jun 2015
Share

Investors on the side-lines ahead of crucial weekend Greek negotiations

United States Dollar: It was a relatively quiet day of trading as investors focus remains on the on-going Greek debt negotiations. For the greenback we had the unemployment claims number released, it showed the number of individuals filing for unemployment increased by 3,000 to 271,000, an increase of 4,000 was forecast and the figure still remained at levels consistent with a tightening labor market. Following this was the consumer spending number, posting 0.9% it was the highest level in almost 6 years. The drop in Oil prices and with the job markets improving consumers are beginning to spend the extra cash, the upcoming quarter could be decisive. The 2 FOMC members we had speaking yesterday failed to match the comments from Powells speech on Tuesday on a rate rise, this passed without any price change. GBP/USD opens up this morning at 1.5721 and with a light day today we can expect markets to remain flat.

We expect a range today in the GBP/USD rate of 1.5680 to 1.5750

Euro: Talks between Greece and its creditors yesterday remained inconclusive, central leaders are nearing the deadline date to unlock additional funds and if an agreement is not reached Greece risks going into default, resulting in an exit from the Eurozone. Talks are to resume again on Saturday and after yesterday’s meeting German Chancellor Angela Merkel went on to say “Saturday has taken on a decisive significance, because time is short,” placing more pressure on the single currency. Euro traded flat yesterday and against the pound we saw a depreciation of only 0.3%. With the markets shut over the weekend any effects from the weekend meeting won’t be felt until Monday. GBP/EUR opens up today at 1.4044

We expect a range today in the GBP/EUR rate of 1.3990 to 1.4080

Aussie and Kiwi Dollars: With another quiet Asian session overnight the Aussie and Kiwi erased any gains we experienced from the previous day. The only release was from New Zealand, its May trade balance showed a surplus of NZ$350 million, much better than the NZ$100 million deficit seen previous. It was unable to shift the price though as the Greek concerns spills into the commodities and GBP/NZD opens up at 2.2888 this morning. The economic calendar is much busier next week for the Asian markets and we will be looking to see if the GBP/AUD can sustain a level above 2.00, we open up this morning at 2.0408

We expect a range today in the GBP/AUD rate of 2.0350 to 2.0450

We expect a range today in the GBP/NZD rate of 2.2790 to 2.2890

Data Releases

AUD: No data

EUR: M3 Money supply, EU Economic Summit

GBP: BOE Gov Carney speaks

NZD: No Data

USD: Revise UoM Consumer Sentiment

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