Greek exit causing panic

<p>The euro took centre stage following a dramatic open yesterday after dropping as low as 1.1880. This all is coming from the ‘Grexit’ as once again […]</p>

The euro took centre stage following a dramatic open yesterday after dropping as low as 1.1880. This all is coming from the ‘Grexit’ as once again the worries of the Eurozone breakup are the main focus. The ECB will most likely be discussing the Greek exit at the non-rate setting meeting this Wednesday.

The SNB’s Jordan is also showing his concerns as Greece staying in the euro will help the cap of the EUR/CHF. He said yesterday that the main scenario is for Greece to remain in the euro.

Today’s data in the Eurozone is the main PMI’s for France, Germany and the Eurozone – all expected to be the same as the last.

Currently the EUR/USD is trading 1.1950 and EUR/CHF is 1.2015

Overnight the Aussie and Kiwi dollars made some ground against the US dollar after China HSBC PMI services were better than expected and the announcement of a $1 trillion boost to projects in 2015, to help growth.

The AUD got an extra boost as the trade deficit was better than expected. Currently AUD/USD is trading 0.8130 and NZD/USD is trading 0.7730.

The Yen has been in safe haven mode for the last two days now as it continues to gain against the USD, this is all down to the Eurozone Greek exit issues, coupled with mixed with the oil and equities sell off. Currently trading 119.20.

The pound followed the weak euro yesterday, falling as low as 1.5200. This was helped along by the weak construction output: the lowest since July 2013.

Today’s data is the services PMI, which is expected slightly higher than last time at 58.9 from 58.6 (currently trading 1.5230).

Data from the US today is the ISM Non-manufacturing PMI expected to dip to 58.2 from 59.3.

 

EUR/USD

Supports  1.1890 1.1845 1.1800  | Resistance 1.1980 1.2020 1.2070

 

 

USD/JPY

Supports 118.90 118.40 117.50 Resistance 1.2030 121.15 121.70

 

 



GBP/USD

Supports 1.5200 1.5140 1.5080 Resistance 1.5320 1.5375 1.5435

 

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.