Forex Forecast

Greece Aid Decision Postponed The meeting of Eurozone finance ministers concluded without any final decisions being taken on when (or indeed whether) to release the next tranche of Greek aid.

No Decision on Greece Aid The meeting of Eurozone finance ministers has just concluded without any final decisions being taken on whether to release the next tranche of Greek aid.

Eurogroup Reaction Sought Risk was steady overnight as markets did not seemed too concerned over Greece’s financial situation and the general lack of agreement over the next Troika disbursement.

Greek Parliament Approves Budget The Greek parliament approved the 2013 budget by a majority of 167 votes to 128, but EURUSD got very little support from this afterwards.

Greek Parliament Says Yes (Again) In yet another midnight vote, the Greek parliament approved the 2013 budget by a majority of 167 votes to 128, but EURUSD was little changed. So far, at the time of writing at least, there have been no post-vote party expulsions which keeps the government’s fragile majority intact.

Greece Delays In Focus Risk appetite had no favours from Europe as the headline flow was not pleasing for those looking for a swift resolution to the issues in Greece. All major bourses are in the red and the EUR had tough session as well, trading in a range of 1.2716-1.2789 while USDJPY also softened […]

Soft China CPI The Australian dollar (and risk appetite more broadly) found support after China’s CPI for October came in softer than expected at 1.7% y/y (cons. 1.9%). The market read it as providing room for future monetary stimulus, although we do not expect any policy initiatives to flow from this.

Yen Rallies With USTs USDJPY dropped to a low of 79.32 overnight after worries about the impending US fiscal cliff intensified. There was no shortage of media commentary on the subject which kept the issue front-and-centre in investors’ minds.

AUDNZD In Play AUDNZD climbed sharply higher after a pair of employment reports (in Australia and New Zealand) exposed the vastly differing conditions of labour markets on either side of the Tasman.

Greek Parliament Says Yes At a midnight vote, the Greek parliament approved the latest round of austerity measures by a majority of 153 to 128. Dissenters emerged from within the ranks of government however, and consequently six deputies were expelled from PASOK and another one from Prime Minister Samaras’ ND party.

Focus Shifts to Greece Risk was broadly back in play during the European session as markets gradually digested the results of US election result before moving on to other matters.