Risk pairs rally as Greece concerns take control

Yesterday saw some corrective turns in the likes of the EUR/USD, after an impressive rally of 200 points that seemed to come out of nowhere. But as the momentum turned to the bid side it seemed that stops in the market and a lot of cutting the short positions and awaiting a clear answer on the Greek debt issue finally kicked in.

EUR/USD is currently trading just below 1.1500 level, with upcoming data now looking to be even more important as we gauge a new direction or continue back down towards parity for the Euro. Today’s data out of Europe is the services PMI from the 3 biggest states in Europe and no weakness is expected – with all data set to be above or on the 50 expansion level, except France.

The pound  also enjoyed a free ride up 200 points yesterday as the market sold USD heavily, with today’s Services PMI being the main data from the UK expected to be 56.6 from previous 55.8.

The USD took the brunt of the moves yesterday and were helped along by comments from the FED’s Kocherlakota, who suggested that the FED should not raise rates in 2015, and they should restart the QE programme if the inflation stays low.

Today’s data is the ADP employment change, which is expected to fall slightly to 224k from the previous 241k. This data is still viewed upon as a good guide to the non-farm payrolls data this Friday.

To finish off the day, the ISM non-manufacturing PMI is released with little change expected at 56.6 from 56.2.

Overnight we saw the Kiwi have a good rally after the RBNZ Governor Wheeler made less dovish comments than thought, mixed with better than expected employment change.

EUR/USD
Supports  1.1330-1.1210-1.1110   | Resistance 1.1555-1.1655-1.1780

USD/JPY
Supports  117.10-116.55-116.20  | Resistance  117.90-118.30-118.85

GBP/USD
Supports  1.5020-1.4900-1.4810 | Resistance  1.5230-1.5320-1.5440