15 Jun 2015
Asia open: Soft Euro and Greenback; Greeks unmoved
FXStreet (Guatemala) - The FX space is gearing up for a busy week ahead as we enter the early hours of the market in Asia today, opening with a number of gaps across the board on a soft dollar, albeit little difference in prices that may be easily filled as we progress through the day and ahead of the European market opening.
AUD is bid and up to test the mid point of the 0.77 handle and gapped 20 pips while the Kiwi is also opening firm testing territory towards the 0.70 handle from a bullish close last week. Yen is another gap vs the greenback while the euro has stood out as worse off and gapped down to test the resilience of support above the 1.12 figure stopping short at 1.1209.
There has been little in the way of news over the weekend other than Greece. Once again the powers at be have been unable to make any progress and no agreements were made. The issues arise where the European's wish for the Greek's to make spending cuts before bailout money can be awarded but the sums of cuts required of EUR2b that cannot be agreed upon, especially on pension cuts requirements which is something that Athens will never accept. However, the Greek deputy prime minister Yannis Dragasakis explained over the weekend that they are still ready to negotiate with its lenders...and so it continues...
FOMC takes this week attention
However and thankfully, this week holds more than just Greece for us to monitor and work with, and the main event of course coming with the FOMC. Even though a rate hike by the FOMC is highly unlikely, it can be expected to recognize the reinvigorated economic momentum, as explained by analysts at Brown Brothers Harriman:
"Yellen will most likely try to keep the market focused on the data, not a particular time frame. Based on current information and the expected trajectory of economic data, a September lift-off remains the most likely scenario."
AUD is bid and up to test the mid point of the 0.77 handle and gapped 20 pips while the Kiwi is also opening firm testing territory towards the 0.70 handle from a bullish close last week. Yen is another gap vs the greenback while the euro has stood out as worse off and gapped down to test the resilience of support above the 1.12 figure stopping short at 1.1209.
There has been little in the way of news over the weekend other than Greece. Once again the powers at be have been unable to make any progress and no agreements were made. The issues arise where the European's wish for the Greek's to make spending cuts before bailout money can be awarded but the sums of cuts required of EUR2b that cannot be agreed upon, especially on pension cuts requirements which is something that Athens will never accept. However, the Greek deputy prime minister Yannis Dragasakis explained over the weekend that they are still ready to negotiate with its lenders...and so it continues...
FOMC takes this week attention
However and thankfully, this week holds more than just Greece for us to monitor and work with, and the main event of course coming with the FOMC. Even though a rate hike by the FOMC is highly unlikely, it can be expected to recognize the reinvigorated economic momentum, as explained by analysts at Brown Brothers Harriman:
"Yellen will most likely try to keep the market focused on the data, not a particular time frame. Based on current information and the expected trajectory of economic data, a September lift-off remains the most likely scenario."