Forex news for Asia trading Monday 22 June 2015

Monday:

  • Former SAC manager's hedge fund bets against euro on Greek woes
  • Japan fiscal blueprint - Japan should take flexible approach to state spending
  • "Risk scenario of Greek exit a drama for Greece, but not for world markets"
  • New Zealand credit card spending for May: +7.1% y/y (prior +7.1%)
  • Blackrock's Miller says AUD 0.7 "a reasonable target by" end 2015, probably lower in 2016
  • Goldman Sachs says Saudi Arabia to push its oil output toward its maximum capacity
  • More on "Greek debt proposal good basis for progress at summit" comments
  • Juncker aide calls new Greek debt proposal good basis for progress at summit
  • UK press: Greece's creditors, 6 mth bailout extension, up to €18bn in rescue funds?
  • German finmin monthly report says economic upturn likely to continue
  • RBA's Edwards: Australian dollar still too high
  • New Zealand Westpac Q2 Consumer Confidence: 113.0 (prior 117.4)
  • "Germany has done its homework and gauged that a Greek euro exit is manageable"UK Telegraph: Greeks beg Merkel not to throw them 'overboard'
  • Euro a little higher in early NZ FX - Greece weekend news round up
  • Monday morning FX - 22 June 2015 - foreign exchange prices, early indications

Weekend

  • Tsipras will meet with top European officials ahead of final summit
  • Greek finance minister: "We're heading for a deal"
  • Tsipras delivers latest proposal to EU for a deal
  • Tsipras holds cabinet meeting to discuss compromises on election pledges
  • Juncker and Tsipras continuing talks over the week-end
  • Austria's Schelling says it's important for ECB to keep providing ELA for Greek banks
  • Monday's Eurozone meeting brought forward 2.5 hours - starts at 1030GMT
  • EU Commission plan sees 6 billion euro bridge loan to Greece
  • No news is good news in Greece
  • Greece - ECB, IMF "deliberately provoking a bank run ... to force Greece to its knees"Silence speaks louder than words in Greece

EUR/USD opened with a small (30-odd point) gap higher in the early NZ trade today. Weekend headlines were less pessimistic for the Greek talks than they have been ... whether that is justified remains to be seen, but we are rapidly approaching crunch time, with a big IMF payment due on June 30. Current market chatter is looking for some sort of deal today that will keep the allowance coming for Greece through until December, when

we

do

this

all

over

again.

Great, eh?

EUR/USD retraced a good deal of the gap,. but soon rallied again and as I update it is near session highs.

USD/JPY, too, had a notable gap higher early, but that soon disappeared, it was covered and then more into the tokyo fix time, taking it into the support area around 122.50/60. Its managed a 20 or so point bounce from the lows only though.

AUD and NZD were both a little soft in the early going but both managed a bounce in the Tokyo morning time as the USD showed some weakness. RBA board member Edwards spoke early in the session (see bullet, above), but had little impact.

GBP continued its winning way, its on session high as I update.

Still to come

  • 2 Greek negotiation meetings ... starts at 1030GMT