Forex news for Asia trading Monday 29 June 2015



All about that Greece ....

  • Opening gaps all over the place this morning in Asia, EUR and yen crosses the biggest losers. EUR was opened lower in response the breakdown of Greek negotiations and then the Greek PM calling a snap referendum over the weekend. Yen caught a strong bid on a 'safe haven' trade. AUD, NZD, GBP, CHF all gapped lower as well, to a greater or lesser extent.
  • It was stop losses & margin calls to the fore in the early hours, with EUR/USD stabilising around 1.1000 (quite wide swings around it) before another plunge down toward 1.0950 before support was finally found and it managed a 65-odd point bounce. EUR/JPY had an even bigger gap lower, with a plunge in USD/JPY combining with the EUR/USD to see us below 134.00 (briefly) before a bounce and sideways around about 135.50 for the balance of the session.
  • AUD and NZD (against the USD) recovered all of their gaps with 100 or so point bounces. GBP, CHF, EUR, yen ... none of these have managed to cover their gap (as of writing).
  • Gold gained on the session, oil fell
  • A summary of ... Here's where we are at with Greece & whats coming up

No, it wasn't all about Greece ...

  • Looks like Puerto Rica saw the news on Greece and decided to try to slip their own bad debt news into the slipstream hoping no-one would notice. Too bad. Bad news bears were on hyper alert and soon were gleefully retweeting and FB'ing and whatever-else the news. This could have important ramifications for US markets, at least for municipal bond markets in the States.
  • Chinese stocks rallied near their open in response to the twin-pronged cuts from the PBOC (it seems the authorities are rather concerned about the plunging stock market ... they cut interest rates and reserve requirements for the first time since the global financial crisis in late 2008) over the weekend ... but soon gave back all their gains, and more. Here's a nice summary via FT ... "The Shanghai Composite has been as much as 2.5 per cent higher and 2.2 per cent lower within the first 30 minutes of trade.". Nuts.