13 Jul 2015
All eyes on Greece, EU Summit
FXStreet (Mumbai) - The Euro zone Summit is underway, aiming for a resolution to the Greece crisis, following weekend’s emergency meeting which ended in 72-hours deadline offered to Greece to implement the reforms in exchange for the bailout funds from the EU. EUR/USD is supported above 1.1120 while the yen remains better bid amid increased safe-haven demand versus the US dollar amid ongoing Greek talks.
Key headlines in Asia
Greece crisis: Eurozone Summit resumes with compromise proposal
Temporal Grexit taken off latest draft proposal ?
AUD/USD better bid around 0.7450, shrugs off China trade data
Dominating themes in Asia - centered on JPY, AUD, NZD
A low-key affair in Asia with most G10 currencies struggling to fill in the overnight EU Summit-induced bearish gap after temporal Grexit was taken off table after the EU delivered extension till July 15 over the weekend.
While EUR/USD filled in the bearish gap and regained 1.11 barrier, finding some support from the ongoing Greece negotiations as the EU Summit resumes on Monday early hours in a bid to reach a final compromise on the Greece third bailout, failing which may pave the way for Grexit. The yen enjoys the safe-haven status amid looming Grexit fears keeping the UJSD/JPY pair restricted below 123 handle.
The Antipodean complex trades mixed with the Aussie undermined by Grexit risks and below estimates China’s trade data. While NZD/USD remains well bid above 0.6700 levels, despite broad based US dollar strength.
Most Asian markets are breaking higher, with China stocks leading major Asian indices higher. The Shanghai composite index now trades 2.28% higher at 3966. The Nikkei 225 in Tokyo advances 1.55%, while Australian benchmark the ASX 200 trades 0.75% higher. While South Korea’s Kospi trades +1.42%.
Heading into Europe - centered on EUR, GBP
A data-empty EUR & US macro calendar ahead, with the ongoing Euro group Meetings expected to remain the main key event. The EU Summit resumes today with Euro zone leaders striving to reach a compromise proposal for a third bailout for Greece in order to avert Grexit, following bilateral meetings between German Chancellor Angela Merkel, French President Francois Hollande, Greek Prime Minister Alexis Tsipras and Donald Tusk, president of the European Council.
EUR/USD Technicals
Valeria Bednarik, Chief Analyst at FXStreet explains, “The technical picture is far from supporting a strong advance, as the daily chart shows that the technical indicators have been unable to recover above their mid-lines, whilst the 20 SMA heads lower around the 1.1160 region. With the pair having set a weekly high at 1.1215, additional gains beyond this level should see the pair extending up to 1.1300, whilst if somehow the bullish momentum persists, a retest of 1.1440/60 seems likely for the upcoming days.”
“The pair has an interim support around 1.1050, albeit a break below 1.1000 is now required to confirm a new leg lower, eyeing then a probable extension down to 1.0920, in route to 1.0820, late May low.”
Key headlines in Asia
Greece crisis: Eurozone Summit resumes with compromise proposal
Temporal Grexit taken off latest draft proposal ?
AUD/USD better bid around 0.7450, shrugs off China trade data
Dominating themes in Asia - centered on JPY, AUD, NZD
A low-key affair in Asia with most G10 currencies struggling to fill in the overnight EU Summit-induced bearish gap after temporal Grexit was taken off table after the EU delivered extension till July 15 over the weekend.
While EUR/USD filled in the bearish gap and regained 1.11 barrier, finding some support from the ongoing Greece negotiations as the EU Summit resumes on Monday early hours in a bid to reach a final compromise on the Greece third bailout, failing which may pave the way for Grexit. The yen enjoys the safe-haven status amid looming Grexit fears keeping the UJSD/JPY pair restricted below 123 handle.
The Antipodean complex trades mixed with the Aussie undermined by Grexit risks and below estimates China’s trade data. While NZD/USD remains well bid above 0.6700 levels, despite broad based US dollar strength.
Most Asian markets are breaking higher, with China stocks leading major Asian indices higher. The Shanghai composite index now trades 2.28% higher at 3966. The Nikkei 225 in Tokyo advances 1.55%, while Australian benchmark the ASX 200 trades 0.75% higher. While South Korea’s Kospi trades +1.42%.
Heading into Europe - centered on EUR, GBP
A data-empty EUR & US macro calendar ahead, with the ongoing Euro group Meetings expected to remain the main key event. The EU Summit resumes today with Euro zone leaders striving to reach a compromise proposal for a third bailout for Greece in order to avert Grexit, following bilateral meetings between German Chancellor Angela Merkel, French President Francois Hollande, Greek Prime Minister Alexis Tsipras and Donald Tusk, president of the European Council.
EUR/USD Technicals
Valeria Bednarik, Chief Analyst at FXStreet explains, “The technical picture is far from supporting a strong advance, as the daily chart shows that the technical indicators have been unable to recover above their mid-lines, whilst the 20 SMA heads lower around the 1.1160 region. With the pair having set a weekly high at 1.1215, additional gains beyond this level should see the pair extending up to 1.1300, whilst if somehow the bullish momentum persists, a retest of 1.1440/60 seems likely for the upcoming days.”
“The pair has an interim support around 1.1050, albeit a break below 1.1000 is now required to confirm a new leg lower, eyeing then a probable extension down to 1.0920, in route to 1.0820, late May low.”