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2 Jun 2015
Greece back in news, GBP/USD regains lost ground – TDS
FXStreet (Barcelona) - Jacqui Douglas, Chief European Macro Strategist at TD Securities, summarizes the key events and financial market performance during the European trading session.
Key Quotes
“Risk sentiment has been struggling in Europe on concerns about Greece after news of an “emergency summit” in Berlin last night between the ECB, EU, and IMF. Greece’s creditors apparently wanted to make sure that they were on the same page as negotiations drag on, after reports of increasingly diverging opinions.”
“The troika is apparently planning on presenting the agreement to Tsipras today, although Tsipras also said earlier today that Greece submitted a plan to its creditors last night, so we’re stuck waiting for more commentary on how much agreement there may be between the two documents.”
“In the meantime, European equities are down around 0.5% on the day, although the EUR and rates markets seem to be focusing more on the above-consensus Eurozone inflation print with EURUSD testing the 1.10 level and bund yields about 6bps higher on the day, pushing back above 0.60%.”
“Outside of the Eurozone, we’ve seen AUD outperform after the RBA failed to reintroduce an easing bias into this morning’s statement, and GBPUSD has regained the ground lost on the back of yesterday’s softer manufacturing PMI as the construction PMI managed to surprise to the upside today.”
“Heading into the North American session, there isn’t much there that is likely to drive markets today, with just second/third tier data in US factory orders and vehicle sales. After tomorrow’s ECB meeting, markets will be turning their attention toward payrolls on Friday, and how much job growth the US can maintain in the face of much slower GDP growth.”
Key Quotes
“Risk sentiment has been struggling in Europe on concerns about Greece after news of an “emergency summit” in Berlin last night between the ECB, EU, and IMF. Greece’s creditors apparently wanted to make sure that they were on the same page as negotiations drag on, after reports of increasingly diverging opinions.”
“The troika is apparently planning on presenting the agreement to Tsipras today, although Tsipras also said earlier today that Greece submitted a plan to its creditors last night, so we’re stuck waiting for more commentary on how much agreement there may be between the two documents.”
“In the meantime, European equities are down around 0.5% on the day, although the EUR and rates markets seem to be focusing more on the above-consensus Eurozone inflation print with EURUSD testing the 1.10 level and bund yields about 6bps higher on the day, pushing back above 0.60%.”
“Outside of the Eurozone, we’ve seen AUD outperform after the RBA failed to reintroduce an easing bias into this morning’s statement, and GBPUSD has regained the ground lost on the back of yesterday’s softer manufacturing PMI as the construction PMI managed to surprise to the upside today.”
“Heading into the North American session, there isn’t much there that is likely to drive markets today, with just second/third tier data in US factory orders and vehicle sales. After tomorrow’s ECB meeting, markets will be turning their attention toward payrolls on Friday, and how much job growth the US can maintain in the face of much slower GDP growth.”