German banks close to agreement on Greek loans

Published on June 30, 2011 by admin · No Comments

Foreign Exchange Overnight/Morning Ranges:

Rate EUR/USD 1.4457-1.4521

Rate GBP/USD 1.5972-1.6118

Rate GBP/EUR 1.1025-1.1115

Dollar sentiment has remained very flat at the moment, reflected by the dollar index (a measure of performance against a basket of 16 currencies), approaching a quarterly loss as well as dropping for a fourth consecutive day yesterday closing down by 0.5% at 74.29. The short term boost to euro sentiment means that the dollar will open down by 1.1% against the euro this morning, as well as 0.5% down against sterling.

The main data focus will be on the US unemployment claims at 13:30, which is expected to show a figure of 419k. And then at 15:00 the Chicago Purchasing Manager’s Index is expected to be down at 54.1.

The Greek parliament yesterday approved a new package of austerity. A second vote will be held today to reform laws that would allow the austerity package to be implemented. It is reported that German banks are near agreement on the extension of Greek loans, following the French banks decision this week.

As a result the Euro has rallied to its recent highs as have stock markets, resulting in a generally weaker USD. Sterling again showing signs of weakness as we open below yesterday’s pivotal level of € 1.1100, weaker economic data and low interest rate expectations not helping the Pounds cause.

Commodity currencies also stronger as the Pound opened below AUD 1.5000 level, a record low.

EUR/USD currently 1.4469. Support 1.4500, resistance 1.4800.

GBP/USD currently 1.5978. Support 1.6000, resistance 1.6300.

GBP/EUR currently 1.1046. Support 1.0850, resistance 1.1100.

Oil $ 95.05 Gold $ 1508

Dow +0.60% FTSE +0.43% Nikkei +0.19%