• French government and banks agree on Greek debt proposal: Press reports
  • Mersch: If Greece defaults, then chaos
  • Schaueble: Convinced Greece will pass austerity measures
  • Greek deputy PM: Some parts of austerity package may not pass
  • UK house prices slightly lower in June
  • Chinese industrial profitability +27.9% YoY
  • Chinese Premier visiting Germany this week; reiterated support for EU-zone, said China will continue to buy EU debt
  • Wen: China growth to stay at 8%-9% pa; inflation to stay below 5% but difficult to get it below 4%
  • New Zealand May trade balance +NZ$ 605 million
  • BIS: Accomodative monetary policies leading to inflation
  • Regional equities -1%, weighed on by worries about Greece

The greenback has had a strong session in Asia, making gains against the majors and against regional currencies. USD/CHF and USD/JPY also rose with risk trades staying static.

EUR/USD closed on Friday in NY around 1.4180 and saw some early strength in the interbank market as they focussed on reports that the French government and banks had agreed on a plan for dealing with upcoming Greek debt maturities (presuming they get paid of course!). The early range was 1.4170/1.4220 but by the time the rest of the market opened at 7am Sydney time, the EUR was already falling. It was all about Greece and worries that the austerity measures may not pass in full. EUR/USD triggered stops below 1.4125 before stopping just above .4100. Ranges: 1.4101/92, EUR/CHF 1.1813/44

AUD/USD has also been busy. It closed in NY at 1.0500 but fell initially alongside the NZD after they had poorer-than-expected trade data. Stops below a previously important low at 1.0435 were triggered before the fall stalled near the 100-day SMA. Ranges: 1.0416/87

Cable has slightly lagged the fall in EUR/USD, though stops were triggered below 1.5935 before the pair steadied. Ranges 1.5912/70; EUR/GBP .8857/91

USD/CHF opened just above important technical support at .8320 and this along with fear of semi-official bids below 1.1800 in the cross, ensured that the CHF lost some ground on the day. Ranges: USD/CHF .8335/84

USD/JPY also rallied strongly in early trade when USD/Asia opened higher and gapped further higher at times. Corporate offers towards 81.00 slowed down enthusiasm as did EUR/JPY selling. Ranges: 80.35/86; EUR/JPY 113.83/114.24