Forex news from the European morning session 6 July 2015

News:

  • Varoufakis resigns despite Greek referendum No vote
  • French fin min Sapin says Greek problems will not be solved by just a referendum
  • Austria's Schelling says there will be no unconditional aid for Greece
  • Bank of France's Noyer: Greek debt to ECB cannot be written off
  • "A deal with in 2 days?" That's an illusion says Nowotny
  • Germany's Jaeger says a debt cut for Greece is "not a topic for us"
  • Germany's Seibert says they respect Greek referendum result
  • Spain's De Guindos says Greece has a right to ask for 3rd bailout programme
  • Tskalotos expected to be named Greek finance minister later this morning
  • ECB to discuss Greek ELA this afternoon - RTRS
  • Greek referendum is not bringing us closer to a solution says Dijsselbloem
  • EU's Dombrovskis takes note of Greek referendum
  • Tsipras now hoping party leaders will support the referendum result
  • Who holds the balance of power in Greek negotiations now?
  • Swiss economic minister sees more upward pressure on CHF after Greek No vote
  • Fitch says outlook on the long term IDRs remains positive
  • China says major economic indicators show signs of improvement
  • Japan's Miyashita says government is watching developments in stock market
  • BOJ Sakura report has 8 out of 9 regions unchanged
  • Option expiries 10am NY cut today 6 July

Data:

  • German factory orders May mm -0.2% vs -0.4% exp
  • Swiss CPI June mm +0.1% vs -0.1% exp
  • July 2015Eurozone sentix index 18.8 vs 15.0 exp
  • Japanese leading index May flash 106.2 as exp
  • Nikkei 225 closes down - 2.08% at 20,112.12

In the aftermath of the Greek No vote we've seen further gains for the euro but sellers happy to jump in too

Traders were already piling in to buy some euros as the session got underway and we saw EURUSD post 1.1088 , EURJPY 135.97 and EURGBP 0.7119 from Asian lows of 1.0970, 133.85 and 0.7055 but we've retreated as the harsh reality sinks in

The war of words has mostly come from the EU side but Varoufakis resigned in typically defiant fashion as EU leaders made it clear they would not proceed with him at the helm

That news had helped the euro to rally as traders felt there was more chance of a deal without him but sellers were quick to throw their hat into the ring

GBPUSD rallied to test 1.5580-1.5600 but failed at the first hurdle to retreat back below 1.5550 only to find buyers again as EURGBP came back below 0.7100

USDJPY and USDCHF have both been beneficiaries of the early euro demand as EURCHF also find itself rallying to 1.0457 from Asian lows of 1.0355 but it too has run out of steam. USDJPY has failed to breach 123.00 so far after a steady climb from 122.30

USDCAD found itself moving lower early on despite falling oil prices but found buyers around 1.2570 and now posted 1.2635 as the black stuff continues to fall

AUDUSD and NZDUSD found some early love but both have failed to hold gains above 0.7500 and 0.6700

We can expect more lack of direction as the day continues with all eyes on Brussels and Berlin