Forex news for US trading on July 13, 2015:
- Tsipras faces party revolt after accepting austerity
- ECB leaves Greek ELA unchanged
- Full Tsipras statement after EU summit
- Greek bank holiday extended through July 15th
- ECB QE count: Buys 11.680bn in PSP last week
- Greece could get a ratings upgrade and leave the Eurozone says S&P
- Dijsselbloem keeps his job as Eurogroup chairman
- US budget surplus comes in at 51.8 billion vs. 50.0 est
- Varoufakis pushed plan to default after referendum
- Gold down $6 to $1158
- WTI crude down 62-cents to $52.12
- S&P 500 up 23 points to 2100
- US 10-year yields up 5 bps to 2.45%
- USD leads, EUR lags
Tsipras caved to Germany and now he faces the wrath of Athens. His 12-person parliamentary majority will be erased in an upcoming vote on sweeping austerity measures and that could throw the government into turmoil.
Worries were restricted to the euro as it slipped below 1.1000 after an early rally tested 1.1200. In US trading, the pair started at 1.1070 and quickly fell to 1.1005 where it found some bids in a bounce to 1.1030 but it slowly drifted lower after that. So far, support at Thursday's low of 1.0992 has held.
USD/JPY jumped to 123.50 in Asian trading from 122.60 but it traded in a tight 123.2050 range for the remainder of the day. Look for a continuation when it breaks.
Cable was under modest pressure, starting at 1.5540 and drifting down to 1.5480 at the lows. It was part of a broad bid under the US dollar as risk appetite improved.
Talk about the BOC meeting on Wednesday is ramping up. USD/CAD hit 1.2790 early in US trading but oil was sticking and it slipped back to 1.2738. The market is pricing in a 40% chance of a BOC cut.
The Australian dollar dipped to 0.7385 at the London fix, from 0.7430 but bounced to 0.7415 before finishing at 0.7402. Commodity prices were mixed and the focus remains on iron ore and China.
