Forex Forecast

Greek Clock Keeps Ticking In the absence of major data releases and minimal news out of Greece, FX markets were relatively subdued overnight. Negotiations on Greece appear to be gaining momentum, however, as several outstanding issues are getting close to being resolved.

Optimism Rises On Deals The euro is trading on a firm note as markets are somewhat more optimistic that several outstanding issues on Greece are close to resolution. Firstly, late into the session on Tuesday a Greek government spokesperson finally announced that political leaders would meet on Wednesday to respond to the bailout proposals by […]

New Deadlines For Greece Despite the lack of fresh news out of Greece markets were willing to overlook this week’s round of negative headlines and push the euro higher. Risk also got a boost from strong US Consumer Credit numbers.

No Change in CHF Stance from SNB FX markets remain driven by headline risk with talks ongoing in Greece. There were few major developments to hit the newswires however and it took a weak German industrial production print (which fell by 2.9%) to push the euro lower.

RBA On Hold For Now AUD was the stand-out performer overnight, breaking through 1.08 as the RBA surprised investors and left its cash rate on hold at 4.25%.. There was a unanimous consensus for a 25bp cut so the move was very surprising.

RBA Decision Due The EUR managed to recover some lost ground during the US session but the commentary from the Eurozone remains rather gloomy. After talks, German Chancellor Merkel and French President Sarkozy both expressed frustration with the state of PSI and troika talks on Greece, as the Greek PM had to postpone domestic talks […]

Euro Drags Risk Assets Lower The dollar gained further ground in Europe, driven by the euro as fears over the situation in Greece have resurfaced. While the market is hoping for a clinching of a debt swap deal today with private sector creditors, securing cross-party support for further austerity measures and securing further funding from […]

Greek Government Response Due The euro suffered overnight as fears over the situation in Greece have resurfaced. While the market is hoping for a clinching of a debt swap deal today with private sector creditors, securing cross-party support for further austerity measures and securing further funding from the troika is proving far more difficult.