EmailBond Market Update
The market at 14:34 ET
| 10-Year: +15/32....%.... GNMAs: .... USD/JPY: 78.69.... EUR/USD: 1.2647 |
Moving the Market
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Empire Manufacturing: Actual 2.3, consensus 13.5, prior 17.1 Net Long-Term TIC Flows: Actual $25.6B, prior $36.2B Industrial Production: Actual -0.1%, consensus 0.1%, prior 1.1% (revised 1.0%) Capacity Utilization: Actual 79.0%, consensus 79.1%, prior 79.2% Michigan Sentiment: Actual 74.1, consensus 77.0, prior 79.3 |
Euro Ticks Higher Ahead of Greek Election
15-Jun-12 14:34 ET
10-Yr: +15/32..1.588%..
USD/JPY: 78.69..
EUR/USD: 1.2647
Markets Wait on Greece: The Dollar Index has been under steady selling pressure all session long and now sits on session lows near 81.60. EURUSD is +15 pips at 1.2645 as headlines continue to cross the wires. The latest chatter suggests European Central Bank policymakers have “overcome a key concern about taking the benchmark rate below 1.0%.” This weekend’s main event will be Sunday’s Greek election with the outcome potentially deciding the fate of the Hellenic Republic’s status in the euro. The 1.2700 level remains key resistance while 1.2400 provides near-term support. GBPUSD is +120 pips at 1.5670 as today’s gains have sterling on track for its best close since the end of May. Recent strength has been rather surprising considering yesterday’s comments from Bank of England head Mervyn King in which he suggested the central bank may soon embark on more easing. Resistance comes into play at current levels. Britain’s Rightmove Home Price Index will cross the wires Sunday evening. USDCHF is -15 pips at .9495 as early strength has reversed onto session lows. The pair has fallen close to 250 pips since the beginning of June, and is currently resting on near-term support. Meanwhile, EURCHF holds flat at 1.2010. 
USDJPY is -70 pips at .7870 as sellers have dropped the pair back onto its 200-day moving average. Today’s slide comes after the Bank of Japan failed to provide measures to weaken the yen, instead opting to keep some powder dry in the event of a fallout from the Greek election. AUDUSD is +40 pips at 1.0060 as traders continue to move into the hard currency on the recent return to risk. The aussie has rallied almost 500 pips off its June 1 lows, and is now testing its 50-day moving average. Overhead resistance aided by the pair’s 200-day moving average comes into play near 1.02250. Australian new motor vehicle sales are due out on Sunday night.
USDCAD is flat at 1.2225 as trade sits on support. Canada’s foreign securities purchases will be released on Monday.
