Dollar Dips Ahead of U.S. GDP; Greek Fears Grow

 
Snapshot: 

        -Dollar dips; 10-year Treasury yield at 2.395%; U.S. stock futures fall; Nymex crude at $61.41; gold at $1174.10
        -Watch for: Third estimate 1Q GDP; earnings from Monsanto
        News: Divisions Remain as Eurozone Finance Ministers Meet Over Greece Deal; ECB Keeps ELA Unchanged for Greece Wednesday, Deposit Outflows Stabilized; EU Leaders Want Greece Negotiations Concluded Tonight
        The euro was little changed in Europe after the Ifo Business Climate Index from Germany fell short of expectations, trading at $1.1216. That's up from $1.1168 late Tuesday.
        The data highlight on Wednesday is the final revision to U.S. gross domestic product for the first quarter. The previous estimate showed the economy contracted 0.7% in the first three months of the year, but economists polled by MarketWatch expect an upward revision to negative 0.2% growth.
        "Any positive revision to U.S. GDP could see the dollar strengthen and the EUR/USD resume its recent selloff," said Nick Rose, trader at TradeNext, in a note.
        The ICE dollar index was down 0.4% at 95.04 ahead of the data. The greenback rallied 1.6% against the euro on Tuesday, its largest one-day gain since May 19, after a strong new-home sales report and hawkish comments from Federal Reserve Governor Jerome Powell.
        Elsewhere, the Australian dollar was buffeted by warnings that the Australian economy will grow at a slower pace in future unless aggressive reforms are undertaken.
        At 0645 GMT, the Australian dollar was trading at $0.7730, compared with $0.7712 late Tuesday. It moved in range of $0.7715 to $0.7758 in Asian trading hours.
        U.S. Treasurys traded little changed in Europe as markets remain calm ahead of the Eurogroup meeting on the Greek debt crisis.
        Treasury yields rose sharply Tuesday after hawkish comments from the Federal Reserve's Jerome Powell who looks for two rate hikes this year. At 4.23am ET, the 10-year cash yield was 2.395% and the September contract was 3/32 higher at 125-175. Ahead is the final reading of first-quarter GDP with Deutsche Bank looking for a marginally improved 0%, while the Treasury is scheduled to sell $35 billion new 5-year notes and $13 billion 2-year FRNs.
        U.S. stocks headed for their first loss in three days on Wednesday, with futures tilting lower ahead of U.S. economic-growth data and after reports that Greece's creditors have not accepted Athens's latest reform proposals.
        Earnings from Monsanto and Lennar were also in focus.
        Futures for the Dow Jones Industrial Average fell 27 points, or 0.2%, to 18,040, while those for the S&P 500 index dropped 1.90 points, or 0.1%, to 2,114.50. Futures for the Nasdaq 100 index were down 1 point to 4,540.25, easing back slightly after logging a record closing high for a second straight session on Tuesday.
        Negotiations continued on Wednesday, with Greek Prime Minister Alexis Tsipras preparing to meet lenders in Brussels. Media reports said Tsipras had told his government the creditors have not accepted Greece's latest reform proposal, adding pressure on European stocks as well as U.S. stock futures. Eurozone finance ministers are scheduled to hold a Eurogroup meeting on Greece at 1pm ET.
        Oil prices rose on a weaker dollar and expectations of another decline in U.S. crude inventories.
        Brent crude for August delivery rose 0.5% to $64.80 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures for July were trading up 0.6 % at $61.41 a barrel.
        Gold was 0.1% lower at $1,174.10 a troy ounce.
        Divisions Remain as Eurozone Finance Ministers Meet Over Greece Deal
        Significant divisions remain between Greece and its international creditors over measures Athens must implement before receiving desperately needed bailout aid, according to a document seen by The Wall Street Journal on Wednesday ahead of a crucial meeting of eurozone finance ministers.
        ECB Keeps ELA Unchanged for Greece Wednesday, Deposit Outflows Stabilized
        The European Central Bank kept its lending to Greek banks unchanged on Wednesday under an emergency lending program, according to a person familiar with the matter, as deposit outflows stabilized in Greece amid heightened expectations that Athens will soon strike a deal with its creditors to unlock bailout funds.
        EU Leaders Want Greece Negotiations Concluded Tonight
        European Union leaders want negotiations between Greece and its official creditors concluded at tonight's Eurogroup and don't expect them to spill over into Thursday's leaders summit, a senior European Union official said Wednesday.
        Hollande to Convene Defense Officials Amid U.S. Spying Claims
        Francois Hollande plans to convene top defense advisers Wednesday, following the publication of a cache of documents purportedly obtained from the NSA that allege Americans spied on him and his two predecessors.
        Senate Clears Trade Bill's Way to Passage
        The Senate is expected to grant President Obama expanded trade-negotiating power on Wednesday, after a messy fight that pitted unions against businesses and split the Democratic Party.
        Write to paul.larkins@wsj.com
        (END) Dow Jones Newswires

        June 24, 2015 06:32 ET (10:32 GMT)

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