Risk appetite has broadly improved in Asian trading as the recent headlines and often time contradictory statements suggest that December’s Greek referendum is now off the table. Despite an intensifying political crisis in Greece, Asia followed the US higher, as the Nikkei climbing 1.86%, Hang Seng 3.40% and Shanghai a timid 0.45%. FX markets have been slightly less reactive to the news with EURUSD bouncing around 1.3788 to 1.3838, while USDJPY is moving in a tight 77.88 to 78.12 range. As for the Greek confidence vote scheduled for today at the time of writing, Greek Prime Minister Papandreou is still PM, but this seems increasingly unsustainable. Reservations around the outcome of today’s confidence vote have deepened after resignations have reduced Papandreou's majority to just one seat. Perhaps, of greater concern, is the damage Papandreou call for a broad referendum on EU membership has caused within the union. It seems increasingly unlikely that even if Papandreou survives today’s vote that the Troika would release the 6th tranche in time to pay Greece’s next maturing bond. We should get the result of the Greek confidence vote around 22:00 GMT today.
In Australia, the RBA stated that “peak in terms of trade has now been reached.” But then followed up the optimistic statement with acknowledgement that weakness in commodity prices should pose downside risk the central banks growth forecast. AUDUSD fell steadily on the news from 1.0430 to 1.0366.
Data coming up includes Eurozone Final composite PMI, index and PPI, German Factory orders, then the main event of US Nonfarm payrolls and Unemployment rate. For US payrolls tonight markets expect total payrolls to rise by 95k with a 125k for private payroll, although the ADP report has skewed the headline number slightly lower. All the while, the final day of the G20 summit in Cannes will be playing in the background. G20 is scheduled to hold a press conference at 915pm NY time.
By
M.Zohaib Gadit
Forex Trading Consultant
In Australia, the RBA stated that “peak in terms of trade has now been reached.” But then followed up the optimistic statement with acknowledgement that weakness in commodity prices should pose downside risk the central banks growth forecast. AUDUSD fell steadily on the news from 1.0430 to 1.0366.
Data coming up includes Eurozone Final composite PMI, index and PPI, German Factory orders, then the main event of US Nonfarm payrolls and Unemployment rate. For US payrolls tonight markets expect total payrolls to rise by 95k with a 125k for private payroll, although the ADP report has skewed the headline number slightly lower. All the while, the final day of the G20 summit in Cannes will be playing in the background. G20 is scheduled to hold a press conference at 915pm NY time.
By
M.Zohaib Gadit
Forex Trading Consultant
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