» » Asia Round Up: Euro declines below $1.10 after German CPI- July 14th, 2015

Asia Round Up: Euro declines below $1.10 after German CPI- July 14th, 2015

Add Comment
Analysis and Technicals
Tuesday, July 14, 2015

Market Roundup


  • Greek PM Tsipras faces party revolt over bailout deal.
  • IMF - Greece misses E456 mln loan payment due yesterday, arrears now at E2 bln.
  • Greece paid back Y11.7 bln of samurais which matured yesterday.
  • UK June BRC like-for-like retail sales +1.8% y/y, May unchanged, total sales +2.9%, biggest rise since March, May +1.1%, sales strongest since January '14.
  • China June money supply M2 +11.8% y/y, CNY lending +13.4%, +11% and +14% eyed, end-June FX reserves $3.69 trln.
  • Australia June NAB business conditions index +5 pts to 11, highest in 8-months business confidence index +2 pts to 10, highest since September '13.
Economic Data Ahead

  • (0300 ET/0700 GMT) Spain June HICP, +0.2% m/m, unchanged y/y eyed; last +0.4%, unchanged.
  • (0315 ET/0715 GMT) Switzerland June producer/import prices, unchanged m/m eyed; last -0.8% m/m, -6.0% y/y.
  • (0330 ET/0730 GMT) Sweden June CPI, -0.1% m/m, -0.3% y/y eyed; last +0.3%, +0.1%.
  • (0330 ET/0730 GMT) Sweden June CPIF, -0.1% m/m, +0.7% y/y eyed; last +0.4%, +1.0%.
  • (0400 ET/0800 GMT) Italy June CPI final, +0.1% m/m, +0.1% y/y eyed; flash +0.1%, +0.1%.
  • (0400 ET/0800 GMT) Italy June HICP final, +0.1% m/m, +0.2% y/y eyed; flash +0.1%, +0.2%.
  • (0430 ET/0830 GMT) UK June CPI, +0.1% m/m, unchanged y/y eyed; last +0.2%, +0.1%.
  • (0430 ET/0830 GMT) UK June RPI, +0.1% m/m,+1.0% y/y eyed; last +0.2%, +1.0%.
  • (0430 ET/0830 GMT) UK June RPIX, +0.1% m/m,+1.0% y/y eyed; last +0.2%, +1.1%.
  • (0430 ET/0830 GMT) UK June PPI output, +0.1% m/m, -1.5% y/y eyed; last +0.1%, -1.6%.
  • (0430 ET/0830 GMT) UK June PPI core output, unchanged m/m, +0.1% y/y eyed; last unchanged, +0.1%.
  • (0430 ET/0830 GMT) UK June PPI input, -0.7% m/m, -11.8% y/y eyed; last -0.9%, -12.0%.
  • (0500ET/0900 GMT) Euro Zone May industrial production, +0.2% m/m, +1.9% y/y eyed; last +0.1%, +0.8%.
  • (0500 ET/0900 GMT) Germany July ZEW economic sentiment index, 29.0 eyed; last 31.5.
  • (0500 ET/0900 GMT) Germany July ZEW current conditions index, 60.0 eyed; last 62.9.
  • (0600 ET/1000 GMT) US June NFIB business optimism index; last 98.3.
  • (0830 ET/1230 GMT) US June retail sales, +0.2% m/m eyed; last +1.2%.
  • (0830 ET/1230 GMT) US June ex-autos, +0.5% m/m eyed; last +1.0%, ex-gas/autos +0.7%.
  • (0830 ET/1230 GMT) US June import/export prices, +0.1% m/m each eyed; last +1.3%, +0.6%.
  • (1000 ET/1400 GMT) US May business inventories, +0.3% m/m eyed; last +0.4%.
Key Events Ahead
  • N/A BoJ Policy Board begins two-day meeting.
  • N/A EcoFin meeting in Brussels, ECB VP Constancio present.
  • N/A Belgium 3/12-mo treasury certificate, Spain 6-12-mo t-bill auctions.
  • (0400 ET/0800 GMT) Netherlands E1.5-2.5 bln 0.25% 2025 DSL auction.
  • (0515 ET/0915 GMT) BoE Gov Carney, other MPC members parliamentary testimony.
  • (0530 ET/0930 GMT) ECB 7-day refinance at fixed 0.05%, E75 bln allotment eyed, last bln.
  • (1045 ET/1445 GMT) ECB Mersch speech at Frankfurt conference.
  • (1300 ET/1700 GMT) BoE MPC Miles speech in London.
FX Recap
EUR/USD is supported around 1.1000 levels and currently trading at 1.0993 levels. It has made intraday high at 1.1011 and low at 1.0972 levels. Pair sunk yesterday after the initial spike, falling down to 1.1000 by the end of the US session, as investors flipped back towards the greenback and stocks. Also, with a Grexit out of the picture, the market is focusing back on Central Bank imbalances. Market will eye on number of economic data release from Euro zone for the further directions in the parity. Initial support is seen around at 1.0914 and resistance at 1.1243 levels.

USD/JPY is supported above 123.00 levels and posted a high of 123.71 levels. It has made intraday low at 123.38 and currently trading at 123.41 levels. The Japanese yen struggled in early trade as investors' taste for risk returned, following developments in Europe on Monday which saw Greece strike a deal with its creditors. A general risk-on sentiment was evident in currency markets on Tuesday, with the safe-haven Japanese yen dropping against its US peer as a result. Looking ahead, markets await retail sales and core retail sales data from the US while eyeing tomorrow's address from Federal Reserve (Fed) Chair Janet Yellen as she delivers the central bank's Semi-annual Monetary Policy Report. Near term resistance is seen at 124.57 and support is seen at 120.63 levels.

GBP/USD is supported around $1.5500 levels. It made an intraday high at 1.5490 and low at 1.5471 levels. Pair is currently trading at 1.5479 levels. Today inflation in the UK is expected to remain significantly weak, ahead of the Bank of England's fresh forecasts that will shed more light on policymakers' views and reasoning. The annual rate of UK CPI is expected to tick down by one notch to no growth in June. Inflation in Britain dropped below zero in April for the first time since the 1960s, only to reverse back one percentage point above zero in May. Initial support is seen at 1.5256 and resistance is seen around 1.5603 levels.

USDCHF is supported around 0.9500 levels and trading at 0.9504 levels and made intraday low at 0.9493 and high at 0.9531 levels. Volatility is higher on as traders were digesting the latest outcome of an eventual Greek deal reached on Monday. The EUR/USD pair dropped on this news and since EUR/USD and USD/CHF are inversely correlated to each other, the euro decline pushed the USD/CHF pair higher. Market will eye on Switzerland PPI numbers for the further direction. Near term support is seen at 0.9341 levels and resistance is seen at 0.9542 levels.

AUD/USD is supported below 0.7500 levels and trading at 0.7420 levels. It has made intraday high at 0.7431 levels and low at 0.7386 levels. Aussie is trading near session highs, boosted by upbeat domestic businesses confidence data. Gains are capped by a stronger US dollar, which is benefiting from a resolution to the Greek crisis. The National Australia Bank (NAB) Business Confidence index rose to 10 in June from a revised 8 in May, and the NAB Business Conditions index jumped to 11 from a revised 6, where a figure above zero shows the majority of businesses saw an improvement in conditions. Initial support is seen at 0.7360 and resistance at 0.7647 levels.

#FX
#Forex
#SaleForex
#AsiaRoundUp
#EuroDeclines
#Below_1.10
#AfterGermanCPI
#TechnicalAnalysis

0 Response to "Asia Round Up: Euro declines below $1.10 after German CPI- July 14th, 2015"

Thanks for give comment.

Subscribe to: Post Comments (Atom)