Article / 19 June 2015 at 7:00 GMT

Morning Markets: Skittish euro, swaggering pound

Head of Editorial Content / Saxo Bank
Denmark







Morning Markets: Prices


Watchlist

  • Japan: Monetary policy decision (0059 GMT)
  • Germany: PPI (0600 GMT)
  • Euro area balance of payments (0800 GMT)
  • Canada: CPI report (1230 GMT)

It was a big week for data, especially of the central bank variety, but with today's calendar notably empty it is time for the major pairs to find direction from the recent policy shifts (or non-shifts, as the case may be).

While the FOMC, the Bank of Japan, the Swiss National Bank, and the Bank of England's statements are over and done with, however, the Greek debacle is not and the prospect of Monday's emergency Eurogroup session may place some downward pressure on the common currency. 

One factor that could help to define EURUSD sentiment is today's German PPI report, where any surprises have the potential to spook a tentative market. No major shocks are forecast, but... one just never knows.

Market signals

Asian session

  • AUD breaks through the 0.78 mark overnight to hit a four-week high.
  • News Corp Australia CEO Julian Clarke to step down at the end of the year.
  • Bank of Japan maintains record monetary stimulus to spur inflation.
  • EURUSD rebounds on FOMC, weak US consumer data.

Forex ahead

  • USDCAD trading in tight range north of 1.22 ahead of Canadian CPI print.
  • GBPUSD trades near 1.59, pound stronger on strong UK retail data.
  • USD Index heads to lowest level since May 18.
  • USDJPY in range south of 123 as Bank of Japan waxes dovish.

From the Floor

Flightless kiwi. “The NZD is heading for 0.9% weekly decline on weak GDP,” says Halley

Correction lurking. “A break below $207 in gasoline prices is signaling a potential move towards $190,” says Hansen

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

1... 2... 3

Markets have remained relatively calm for now and the US stock market rallied on Thursday, so where's the Greek hysteria, asks Juhani Huopainen?

Bad boy

The naughty Swiss might be called back into class; despite the bloodbath in January around the Swiss franc, opportunities still exist for CHF crosses, says Max McKegg 

Shanghai shuffle

Alibaba's Ant Financial is likely to eschew a US listing for one in Shanghai, as Chinese markets mature and the MSCI index comes on stream, says Neil Flynn

Pressure point
Now is the time for the Eurozone to pressure Greece into making a realistic set of proposals that can be economically acceptable, writes Stephen Pope.

Thanks Janet!
Gold had been struggling at around the $1,180/oz mark but with a dovish Fed sending the dollar and bond yields down, it's made another bid for its regular $1,200/oz home, says Ole Hansen.

Clockwork orange
The deadline on Greece is ticking, ticking, ticking away and the Mediterranean state increasingly looks like it is on a path to an "unprecedented recession," writes Christopher Dembik.

On demand
Netflix stock sits near the peak of a multi-year rally, and analysts continue to upgrade the firm's rating and increase price targets. Is NFLX still worth it, asks Michael McKenna?

If there's a deal...
There's every reason to expect  a 10% rise for European equities in the event of a Greek deal. But it's Greece that has more to lose from a talks failure, warns Teis Knuthsen.

Frankfurt





















Storm clouds lie heavy over the Eurozone as a weakening currency reflects 
broad uncertainty on the EU's ability to resolve the Greek debt issue. Photo: iStock

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4y
Gwen Gwen
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