Currency Tech

EURUSD  R 2: 1.4550  R 1: 1.4500  CURRENT: 1.4391 S 1: 1.4300  S 2: 1.4245 GBPUSD  R 2: 1.6475  R 1: 1.6445  CURRENT: 1.6341 S 1: 1.6210  S 2: 1.6175 USDJPY  R 2: 81.00  R 1: 80.65 CURRENT: 80.49 S 1: 80.00  S 2: 79.55 AUDUSD  R 2: 1.07750 R 1: 1.0725  CURRENT: 1.0633 S 1: 1.0570  S 2: 1.0510

Market Brief

Greek issues continue to hold dominance over markets as EU officials struggle to break a deadlock on a second Greek bailout plan after an emergency session of finance ministers yesterday failed to agree on the terms of the bailout. Germany is pushing for bondholders to bear part of cost of the new bailout while ECB is against the move saying that it could lead to EU’s first default and German and French leaders would meet on June 17 to resolve any differences with respect to Greece. There are also speculations that the bailout may get postponed to July as against June end deadline, which has put a doubt on the payment due to Greece early next month. EU finance ministers will meet on June 19 again to try to form an agreement on bailout terms as the deadline is for the June 23-24 EU Finance ministers meeting and leaders study options given by the EU, IMF and the ECB.  Dollar gained against majority of currencies although US retail sales dropped 0.2%, less than forecast, damping demand for safe currencies although gaining against the Franc and Yen. USDJPY traded at 80.64 highs, EURUSD dropped to 1.4377, GBPUSD down to 1.6328, AUDUSD trading at 1.0714 highs, NZDUSD at 0.8208, USDCHF at 0.8495 highs, Gold recovered from lows of $1515 to trade at $1527 while Silver moved up to $35.70 highs.

The Swiss Franc dropped against all currencies as the government lowered forecast for 2012 economic growth and said further currency strength could pose risk to outlook. The SNB could keep the rates unchanged as the Franc moves to new record highs as the SNB meets tomorrow to discuss rates where any hike is postponed to the September meeting. Meanwhile, earlier in Asian trading, RBA Governor Stevens said that policy makers will have to raise rates soon and signaled inflation could be the key reason which kept the Aussie boosted. 

UK releases jobless claims and unemployment data, industrial production data due from EU while US releases the inflation figures, manufacturing from New York area, treasury purchases, industrial production and oil inventory report.