GBP/USD holds around $1.5975/80 area and remains just shy of the London fixing high level at $1.6010. Earlier offers capped further rally. Those offers extending up to $1.6025/30.
Three major indexes hold wothin a narrow range now, but near their best levels of the day. Overall action has dulled, which has made today's market watching less entertaining. Nonetheless, today's advance offsets last week's loss.
EUR/USD currently holds around $1.4261, retreating on profit-taking of euro crosses, including EUR/JPY and EUR/GBP. Earlier rate printed session high on $1.4293, a bit lower Friday's highs at $1.4305/10. Stops remain at $1.4315.
The euro strengthened amid optimism Greece’s parliament will approve austerity measures required to help avert the currency bloc’s first sovereign default.
Greek lawmakers start debating today the five-year, 78 billion-euro ($111 billion) package of budget cuts and asset sales that officials say is needed to receive a loan payment and future financing from the European Union and the International Monetary Fund.
The shared currency was also supported as Chinese Premier Wen Jiabao said his country will keep investing in Europe’s sovereign bond market.
“China has actually increased the purchase of government bonds of some European countries, and we haven’t cut back on our euro holdings,” Wen told yesterday. These acts “show our confidence in the economies of Europe and the euro-zone,” he said.
The pound strengthened on speculation the Bank of England may raise rates earlier than expected after the Bank for International Settlements said central banks need to start raising interest rates to control inflation.
New Zealand’s dollar slumped after a report showed the trade surplus narrowed in May more than forecast.
The nation’s trade surplus was NZ$605 million ($485 million) in May compared with the median estimate of economists for a NZ$1 billion surplus.
Stocks continue to trade near session highs. Buying has been both steady and broad since the early going.
Tech stocks, consumer discretionary stocks, and telecom plays have all caught up with financials, which were early market leaders. Now, each of the four sectors is sporting a 1.1% gain.
US futures and bonds will observe an early close Friday ahead of the July 4 holiday weekend, US markets remaining closed Monday in observance of the holiday. Canadian markets will be closed Friday July 1 for the Canada Day holiday.
After a brief pause about one hour ago, stocks extended their climb to set fresh morning highs. Strength has been broad based.
The financials remain out in front of overall action with a 1.2% collective gain.
Among today's leaders Amazon.com (AMZN 198.47, +5.92), which was added to the Best Ideas List by analysts at Morgan Stanley (MS ).
The rate posted new session low of $1.0390 finding support down here before bounced back to $1.0425. Resistance at $1.0460/70. Initial support remains at $1.0390 with stops through here. A break lower opens a move to $1.0250.
Stocks slipped shortly after the open, but have managed to make a quick rebound. The bounce has given the major equity averages modest gains.
Financials are primary source of early support. The sector has already sprint ahead to a 1.0% gain. Among financials, banks are in particularly good shape. Buying in the space has the KBW Bank Index up 1.4%
EUR/USD $1.4100, $1.4160, $1.4200, $1.4350, $1.4370
USD/JPY Y80.10, Y80.30, Y80.50, Y81.00, Y82.00
GBP/USD $1.5900, $1.6115
The euro strengthened against most of its 16 major peers tracked by Bloomberg amid optimism Greece’s parliament will approve austerity measures required to help avert the currency bloc’s first sovereign default.
The Dollar Index erased an earlier gain as Vittorio Grilli, head of the European Union’s Economic and Finance Committee, met representatives of some of the world’s biggest banks to discuss how private investors can participate in a new rescue. Greek lawmakers will today start debating the 78 billion-euro ($111 billion) budget package that officials say is needed to receive a loan payment and future financing.
“The euro could be range-trading between $1.41 and $1.43 until we get to the vote,” said Lutz Karpowitz, a currency strategist at Commerzbank AG in Frankfurt. “We are pretty sure that the Greek parliament will let these austerity measures pass through. Everybody who understands what will happen if they do not agree to implement these reforms comes to the conclusion that there is no alternative.”
US data starts at 1230GMT with Personal Income/Expenditures and the PCE Price Index. Personal income is expected to rise 0.4% in May, as payrolls rose 54,000, the average workweek held steady at 34.4, and hourly earnings rose 0.3%. PCE is forecast to hold steady x.x% on the 0.2% decline in retail sales. Non-auto sales rose 0.3%. The core PCE price index is forecast to rise 0.2% following the 0.2% April gain.
Recovery extends to $1.6010, though move higher seen more driven by euro-dollar demand, as the cross again meets resistance in the area between stg0.8890/00. If rate can clear above $1.6010 to open a move toward $1.6025/30 ahead of stronger interest between $1.6050/55.
Continues to get pulled higher by euro-dollar's extended recovery, the rate moving through to challenge reported offers at $1.5985, posting highs at $1.5987. Rate currently trades back around $1.5980. Next resistance seen into $1.6000 ahead of $1.6025/30. Support now seen at $1.5950.
Euro bears driving the region’s shared currency to its first two-month loss in a year are facing rising interest rates, bullish bets in futures markets and Angela Merkel’s determination to keep the 17-nation bloc intact.
The Nikkei 225 was down 100.40 points, or 1.04%, to stand at 9578.31. The broader-based TOPIX was down 7.47 points at 825.73.
EUR/USD $1.4100, $1.4160, $1.4200
USD/JPY Y80.10, Y80.30, Y80.50, Y81.00, Y82.00
GBP/USD $1.5900, $1.6115
Resistance 3: Y81.80 (high of June)
Resistance 3: Chf0.8440 (Jun 23 high, МА (200) for Н1)
Resistance 3: $ 1.6070 (area of Jun 23 high and Jun 16 low)
Resistance 3: $ 1.4370 (support line from Jun 7)
12:30 USA Personal income (May) 0.4% 0.4%
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