Forex news from the European morning session 9 July 2015

News:

  • ECB's Draghi says a Greek deal "will be really difficult"
  • BUBA's Weidmann says central banks have no mandate to safeguard solvency of banks
  • ECB's Hansson says Greek situation "much worse than even 10 days ago"
  • EU and IMF to assess Greek debt sustainability
  • EU's Tusk says he expects comprehensive proposals from Greece
  • Luxembourg's Bettel says Eurogroup still waiting for fresh proposals from Greece
  • Ireland's Noonan sees "better than 50%" chance of Greek deal
  • Greek energy minister Lafazanis expects a deal to be reached with creditors
  • Greek general government debt at end-May EUR 313bln
  • Italy's Padoan says lack of concrete steps in Greek talks is a waste of time
  • Greek banks will have cash in ATMs until Monday
  • Fed's Kocherlakota says decline in neutral real US interest rate makes it more difficult to achieve goals
  • Japan's Amari says excessive yen strength has been corrected
  • Japan's Suga says they are not worried by stock market fluctuations
  • Chinese equity markets close sharply higher after another turbulent session
  • China losing low-cost advantage
  • Option expiries 10am NY cut today 9 July

Data:

  • German trade balance May adj EUR+19.5bln vs +20.5bln exp
  • Greek unemployment rate April 25.6% vs revised 25.8% in March
  • Nikkei 255 closes up +0.6% at 19855.50

No news on the latest Greek proposals but the euro has fallen back from a positive start after warnings from Draghi and Weidmann raised the scare-ometer again

EURUSD had an early test of resistance/offers at 1.1125 with EURGBP posting 0.7215 and EURJPY 135.09 but then Draghi's comments in a newspaper interview poured a bit of cold water on the party and it was wobble time again

Add another dash of Weidmann's anti-ELA rhetoric and the Grexit fears returned. EURUSD fell to 1.1065 in fairly rapid time and has since fallen to test good support/bids around 1.1025. EURGBP has looked at support lines in to 0.7160 and EURJPY down to 133.85

But we're seeing a little euro demand again as US desks open up and now back up to 1.1050, 0.7184 and 134.30

Cable had an early look upstairs at the 1.5420-30 resistance area but it too didn't require much of an excuse to head lower again and was happy to follow EURUSD down to 1.5370 albeit supported on the way down from the EURGBP supply again.

USDJPY tested 121.50 on a better close to the Nikkei only to fall back to decent support now at 121.30 as yen pairs once more started to slide. Back up now to 121.52 as the cross moves reverse too

USDCHF and EURCHF have once again looked supported with the SNB probably doing their bit again. EURCHF has definitely got a bid at 1.0460 and has posted 1.0504 highs. USDCHF had a good rally to 0.9516 as EURUSD tumbled but lower too now also

USDCAD has given up gains to 1.2748 in the face of strong offers and fallen back to 1.2688 with oil price firming adding to the move. AUDUSD and NZDUSD have both been in retreat after running into good res/offers at 0.7500 and around 0.6750 but finding demand again at 0.7425 and 0.6700

Traders still unsure of how to play a Grexit outcome and we can expect that to continue right into the week-end's EU summit.