Forex news for US trading June 10, 2015:
- ECB said to consider offering Greece staggered deal on aid
- Dijsselbloem: Only a few issues with Greece remain to be solved
- Greece considering bailout extension to March 2016 - AFP source
- European Commission and Greece to work on a deal with Eurogroup approval
- Greek official says it's hard for Athens to make more concessions
- Germany won't accept any other proposals on Greece: Govt
- May 2015 UK NIESR GDP 0.6% vs 0.4% prior
- ECB's Coeure: ECB does not intend to counter market volatility in short term
- No mention of monetary policy from Carney at Mansion House
- EIA US crude oil inventories -6.8m vs -6.7m barrels in API report
- Putin riles up against the G7
- World Bank cuts 2015 global growth forecast to 2.8% from 3%
- ECB said to raise Greek ELA ceiling to 83B euros from 80.7B euros
- US 10-year yields up 4.5 bps to 2.48
- German 10-year yields up 3 bps to 0.98% after hitting 1.06%
- WTI crude oil up $1.07 to $61.225
- Gold up $9 to $1186
- S&P 500 up 25 points to 2105
- JPY leads, CHF lags
The major move came before US traders arrived. USD/JPY dropped 200 pips in Asia/Europe after Kuroda said he didn't think the yen would decline further. The comments was somewhat benign and Amari tried to put the horse back in the barn and that led to a half-cent bounce to 123.25 but the sellers were waiting and the pair skidded along the bottom throughout US trading. Last at 122.64.
The US session was more about the euro and cable.
The euro was playing a game of Deal or No Deal on Greece. There was nothing definitive but enough smoke to envision some fires of compromise. In any case, it was tough to stay in a winning trade as EUR/USD 3 round trips in the 1.1260 to 1.1340 range in US trading.
For the third day, extreme volatility was also the story in cable. This time, at least, there was a bit of a reason as a rally to 1.5550 was derailed when Carney didn't deliver anything at all at Mansion House. There was speculation he'd be hawkish and when it didn't arrive, there was a slump to 1.5475 but that didn't last either and a late rally boosted it back to 1.5530.
USD/CAD was a laggard on broad, oil-driven loonie strength. The pair found support near 1.2200 as NY and Toronto arrived. That combined with a dip in oil on higher US production and the pair rebounded to 1.2270.
The Australian dollar wedged as it consolidates a big gain from yesterday's Asian session. The US range was a relatively tidy 0.7740 to 0.7772.
Similar looking chart in kiwi but that's less of a surprise with the RBNZ decision less than an hour away.