- Greek parliament passes a vote of confidence in the government
- China’s inflation to rise in June but moderate in H2- NDRC
- USD/CNY fixed at new record low, 6.4683
- Australia’s MI leading index indicator slips slightly
- Pimco: Greek default unlikely to trigger financial crisis
- MSCI keeps South Korea and Taiwan as emerging markets
- Stockmarkets rise by 1% on average
- Gold $1548/oz; Oil -0.5% at $93.60/bbl
All of the action was in the first hour of trade as the market awaited the Greek parliamentary confidence vote. EUR/USD traded around 1.4400 before the expected announcement that the government had won the vote. EUR/USD traded to a high of 1.4435 immediately thereafter but dealers report that heavy selling interest sent the pair immediately back below 1.4400, in what was a case of buy-the-rumour-sell-the-fact. Sell interest in some EUR crosses like EUR/GBP also weighed on the EUR. The pair traded a 1.4370/1.4400 range for the first few hours before breaking lower onto another 30 pip plane between 1.4345/75. Ranges: EUR/USD 1.4343/1.4435, EUR/CHF 1.2079/1.2132, EUR/JPY 115.11/75, EUR/GBP .8847/88
The MSCI announcement also had a mildly bearish impact on the KRW and a modest rally in USD/KRW helped sentiment towards the greenback across the board.
AUD/USD traded up and down alongside the EUR/USD in a 1.0565/1.0612 range.
Cable 1.6195/1.6242, USD/CHF .8402/30
USD/JPY also saw little or no interest or flows inside a tight 80.18/32 range.
