Global Markets:
- Asian stock markets: Nikkei up 1.50 %, Shanghai Composite fell 2.50 %, Hang Seng gained 0.40 %, ASX rose 1.30 %
- Commodities: Gold at $1186 (+0.20 %), Silver at $16.08 (-0.40 %), WTI Oil at $60.05 (-0.50 %), Brent Oil at $63.15 (-0.30 %)
- Rates: US 10 year yield at 2.39, UK 10 year yield at 2.10, German 10 year yield at 0.89
News & Data:
- Australia CB Leading Index -0.3 %, Previous: 0.0 %
- Australia House Price Index 1.6 %, Expected: 2.3 %, Previous: 2.0 %
- Japan Manufacturing PMI 49.9, Expected: 50.6, Previous: 50.9
- China HSBC Manufacturing PMI 49.6, Expected: 49.4, Previous: 49.2
- Greek PM Tsipras: Talks to Continue In Next 48 Hours — RTRS
- Greek PM Tsipras: Solution Should Include Economic Viability, Debt Sustainability & Growth Issues — RTRS
- EU’s Juncker: Have Proposed €35bln Programme For Greek Growth Between Now & 2020 — RTRS
- EU’s Dijsselbloem: `Hard Work To Do' In Coming Hours On Greece — BBG
- China’s Stocks Plunge, Extending Steepest Slump in Seven Years – BBG
Markets Update:
No significant progress was made yesterday in negotiations between the EU and Greece, but it paves the way for further talks this week and perhaps even a deal ahead of the weekend. The markets remain rather nervous. While equities are doing fine, price action in the Euro pairs is still very choppy. Overnight, EUR/USD dropped sharply, with no apparent catalyst behind the move. Dealers are blaming poor liquidity and stops below 1.13 getting cleared. Key support is now eyed at 1.12 and a break below would pave the way for a 1.1050 test.
The decline in EUR/USD helped the US Dollar recover. USD/JPY rose to 123.75 in the Asian session, up 100 pips from where it opened on Sunday evening. Immediate resistance noted at 123.80 and decent selling interest in front of the 124.50 level. To the downside, key intraday support now at 123.20 and then 122.75/80.
The commodity currencies performed poorly overnight, amid an overall bid USD. AUD/USD dropped 40 pips, but found support around the 0.77 level, while NZD/USD fell to a fresh multi-year low at 0.6838.
Looking ahead, we will get a series of PMI data out of the Euro Zone, while in the US session, the focus will be on Durable Goods Orders and New Home Sales.
Upcoming Events:
- 02:45 BST – Chinese HSBC Manufacturing PMI
- 08:00 BST – French Manufacturing PMI
- 08:00 BST – French Services PMI
- 08:30 BST – German Manufacturing PMI
- 08:30 BST – German Services PMI
- 09:00 BST – Euro Zone Manufacturing PMI
- 09:00 BST – Euro Zone Services PMI
- 13:30 BST – US Durable Goods Orders
- 15:00 BST – US New Home Sales
