Commodity currencies are all strong today as boosted by recovery in global risk appetite on optimism that Greece would avoid an immediate default. Data from Canada maintains a firm tone in the loonie. Canadian GDP avoided a contraction in May and was flat m/m. Crude oil is staying firm around 95 level for the moment and helps support the loonie, which will likely extend the CPI triggered rally against dollar in near term. This week’s data fuel speculation that while BoC would likely be on hold in Q3, it may restart tightening in Q4. New Zealand dollar rises to new record high against dollar today, getting additional boost from RBNZ Governor Bollard and confidence data. Bollard said that “rising commodity prices are improving export incomes but putting pressure on the … Read entire article »

By: Barbara Zigah Yesterday’s passage of new austerity measures through the Greek Parliament helped to push the Euro to a 3-week high against the U.S. dollar. That leaves one last hurdle for the Greek government to jump, namely today’s implementation vote. Article source: http://www.dailyforex.com/forex-news/2011/06/Greek-Vote-Passage-Pushes-Euro-Higher-But-Uncertainty-Still-a-Factor/8220 … Read entire article »

Euro extends its broad based rally against major currencies today on optimism that Greece’s problem is solved in near term after yesterday’s parliamentary passage of austerity plan. The near term resolution in the Greece situation also helps boost risk appetite in general and sends Asian equities broadly higher following another day of rebound in DOW overnight. Dollar is defensive against all major currencies for the moment as focus is back to the fragility of US recovery as well as IMF’s warning to US for raising the debt ceiling Strength in crude oil, which is now back above 95 level after drawing support from 90, also gives some pressure to the greenback. To recap, Greek parliament approved the austerity package of 78B euro, with 155 out of 300 lawmakers voting in … Read entire article »

Euro retreats mildly after Greek Prime Minister Papandreou finally got parliamentary approval of the five year EUR 78b austerity plan, today by 155 votes within 300 seats. Yield on 2 year Greek bonds dropped further on the news to below 27%, from where it touched 30% in mid June. Greece will face another test tomorrow as the parliament will hold an -article-by-article vote on legislation implementing the austerity plan of EUR 28b as well as a EUR 50b privatization program. Though, it’s expected that tomorrow’s vote is just a matter of formality. And, that should clear the path for EU and IMF to release the EUR 12b tranche of the EUR 110 bailout package to Greece in July. One point to note that swiss franc indeed has more … Read entire article »

By: Barbara Zigah In spite of the public protests and violence which erupted yesterday on the streets of Athens, investors appear confident that the Greek Parliamentary vote needed to push through additional austerity measures will pass. That sentiment is helping to boost the Euro against the U.S. Dollar, and also giving a lift to Asian equities during the Asian trading session. As reported at 2:22 p.m. (JST) in Tokyo, on the EBS trading platform the Euro was trading against the greenback at $1.4367, dropping back slightly from the $1.4371 late New York Trade. The Euro also moved higher against other safe haven currencies, trading against the Yen at 116.50 Yen, a dip off yesterday’s trade of 116.56 Yen. Against the Swiss Franc the Euro was recently higher at 1.1961. With the voting … Read entire article »

Euro remains firm broadly in as investors are optimistic that Greek parliament will pass the austerity plan which is needed to secure funding from the EU/IMF. The Greek parliament will vote today on Prime Minister George Papandreou’s 5-year plan of budget cuts and asset sales amid a wave of strikes and protests. Investors are increasingly more confident that the package will be passed and Greece will then be able to tap the 5th tranche of funding and avoid immediate default. Market sentiment was also bolstered on the news that German officials will meet with banks today, discussing their role in a rescue plan for Greece, with the French proposal as the base of discussion. … Read entire article »

By: Barbara Zigah A single day ahead of a legislative vote in the Greek parliament, which if approved will pave the way for the 5th bailout payment from the E.U./IMF special purpose mission, protestors by the thousands are amassing on the streets of Athens, according to a recent Reuters report. Thus begins a 2-day strike, organized by Greek labor unions, of individuals, including the unemployed, who plan to protest the additional austerity measures which were a precondition to the 5th tranche payment. Reuters also reports that some 5,000 riot police are likely to be deployed to the streets of Athens in an attempt to protect the Parliament building. Protestors have said that they hope to keep the lawmakers from entering and casting their crucial vote. The presence of the protestors notwithstanding, the … Read entire article »

Dollar weakens broadly in early US session on weak economic data, and in particular against swiss franc with USD/CHF at new record low. Conference board consumer confidence unexpectedly dropped to 58.5 in June, hitting an eight month low. The data raises worry that next week’s job report would should another month of rising unemployment rate, which in turn further prolong Fed’s ultra loose monetary policy. SP Case-shill 20 cities hour price dropped -4.0% yoy in April, the worst figures in seventeen months. Also, backlog of foreclosures as well as falling sales now is still increasing the risks of further price declines. Dollar index breaches 75 level in early US session and remains weak. Euro remains steady as markets are awaiting Greece vote on austerity measures on Wednesday and Thursday. The … Read entire article »

By: Barbara Zigah In Asian trading, the Euro earlier edged higher yet stalled just short of chart resistance as market players take a wait-and-see stance on Greece’s upcoming Parliamentary vote for additional austerity measures. Without passage of the new legislation, the next disbursement of the 5th tranche of the Greek bailout loan from the special purpose E.U./IMF mission will not be made. While most Greek citizens are aware of that fact, the vote for the highly unpopular austerity measures may be in question, with several Socialist party members already voicing their dissent. As reported at 3:16 p.m. (SGT) in Singapore, the Euro was trading against the U.S. Dollar at 1.4270, though it had briefly touched on an intra-day peak near $1.4330. The Greek voting begins tomorrow in Parliament, followed by an implementation … Read entire article »

Euro maintains gain against dollar even though it lacks follow through buying to extend this week’s rebound. Markets are generally optimistic on Greece parliamentary approval of the austerity package tomorrow. And, to recap, the approval of the austerity package is needed for EU and IMF to approve the next tranche of bailout payment of EUR 12b as well as getting the second bailout. EU finance ministers will next meet on July 3. Meanwhile, Euro is also supported by news that Germany has been urging to have a “plan B” if Greece fails to pass the austerity vote, and that include the possibility of reactivating the European Financial Stability Facility. But again, firstly, traders are still refusing to commit to any position before the Greece vote. Secondly, we’d like to emphasize … Read entire article »