Forex News

TOP EZ FinMins said for the first time that they would consider asking Greece’s private creditors to extend the maturities on their bonds to buy Athens more time to pay down its huge debt. At a meeting in Brussels the ministers also approved a bailout for Portugal and backed Italian Mario Draghi to become the […]

Overnight equity markets Nikkei          +0.16%          9’574.00 S&P500          -0.62%          1’329.47 Dow             -0.38%          12’548.37 Nasdaq          -1.63%          2’782.31

GBP/USD charted an inside day to leave our negative bias intact. We look for losses to the one year uptrend at 1.6067.

Far East mkt touting this around the last few hours… Spain May Have Billions Euros of ‘Hidden’ Public Debt, FT Says

Recent dollar gains seems to be in for a bit of congestion (before continuing stronger). So EURUSD risks a 1.4200/4350 bounce before lower.

Hints are augmenting that politicians are open to a re-profiling of Greek debt while still excluding a larger-scale restructuring. Together with yesterday’s Merkel guarantee last night’s Eurogroup meeting should add to modest spread tightening with Spain likely trailing behind in the run-up to this week’s auctions.

The Empire State manufacturing index fell to 11.90 in May from 21.70 in April, well below our (21.0) and consensus (19.55) expectations. The component indices, which do not contribute directly to the headline index of general business conditions, were much more encouraging.

Recently, we have seen big moves in commodities; but the fallout as far as the commodity currencies are concerned has been very limited. Some would argue this is further evidence that markets are starting to decouple and correlations are breaking down.