Greece Approaches Deadline

Morning Briefing : Greece approaches deadline today, euro weaker What's new: Asia: Major equities seem mixed after a positive US close and doubts over Greece this morning Greece: Coalition Parties face troika imposed deadline United States: Stronger than expected Payrolls data last Friday Australia: Softer retails sales data point towards rate cut as early as tomorrow Forex rates in Asia and Indices: EURUSD: 1.3131– 1.3053. USDCHF: 0.9234 – 0.9190. GBPUSD: 1.5822 - 1.5765. EURJPY: 100.54 – 100.06. USDJPY: 76.80 – 76.49. DowJones: 12’862.23 +1.23% NASDAQ: 2'905.66 +1.61% S & P 500: 1'344.90 +1.46% Nikkei: 8’929.20 +1.1% Shanghai: 2'331.14 +0.03% Gold: $ 1'734.00 Crude Oil: $ 97.41 Comments: EUR/USD opened around 28 pips lower early in today’s session, opening at 1.3118. The buck ...

Risk Appetite Set To Freeze The severe arctic winds have reminded much of Europe that winter still has some bite and, in a similar vein, risk appetite is likely to peak as a more sobering reality returns. A key issue is that governments will look to take advantage of any improvement in conditions to row back on reforms and austerity as they face an increasingly hostile electorate. Key banking-sector reforms are also likely to be delayed with underlying issues left unresolved and business confidence is liable to dip again as seasonal components become much less favourable. The dollar should be able to resist heavy selling even if a Greek solution can be found. Yet again, the Greek situation will have an important impact as the latest deadline for a deal approaches. Following daily ...

Risk appetite and market volatility are likely to be slightly elevated today as investors gear up for the rollercoaster that lies ahead considering today is the last day before the deadline for lifting the US debt ceiling. Economic News USD - USD Edges Higher as Debt Talks Nearing End The US dollar (USD) was seen trading mildly bullish at the start of this week as traders anticipate a completion to the debt talks that many assume will end the debt ceiling debacle that has gripped the nation for the past few weeks. The dollar has been primarily gaining from such momentum due to the shift into safer assets, but woes regarding the inability of Congress to address the impending debt crisis have partially dragged on the USD in sporadic bursts. Though news has been both positive and ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States Another week has gone by and U.S. lawmakers have yet to reach a deal to raise the statutory debt ceiling. The U.S. government is just three days away from exhausting its authority to borrow. If there is no progress over the weekend, the U.S. Treasury will have to give further details on a contingency plan for how it would to deal with its funding shortage. As if all of these was not enough bad news, this morning real U.S. GDP came out well below expectations, with an annualized quarterly expansion of 1.3% in the second quarter. Furthermore, first quarter growth was revised down sharply from 1.9% to 0.4%. This is a stark reminder of the weakness of the U.S. economy. Canada With investors moving towards "safe" ...

Confidence remains fragile in markets with the extensive and exhausting toll of the debt crisis on investors. The Congressional leaders have yet to reach an agreement with the approaching August second deadline while European leaders seemingly did not convince the majority of the new measures worthiness to stem the contagion risk. It is clearly evident that the debt crisis that started in the euro area and transformed into another in the United States is the focus and the main downside pressure on the market, which is by itself also adding uncertainty and negative expectations to the outlook for global growth. The pessimism is the dominant sentiment and the shaky sentiment is seen in choppy trading with the market turning lower with the start of the last trading day, and we can clearly ...

A breakdown in Congress over the debt limit this weekend has resulted in rather sporadic behavior in the forex market so far Monday morning. Though risk aversion appears to be rising, indicated by soaring precious metal values, the EUR also appears to be on the rise as the US dollar (USD) plummets. A sentiment of weakening US value appears to be seeping in as the August 2 deadline nears. Economic News USD - USD Bearish as Debt Talks Fumble The US dollar (USD) was seen trading bearish at the start of this week as traders began to view the lackluster performance of the US economy these past several weeks as a sign that regional economic growth will be limited. The dollar has been primarily gaining from such momentum due to the shift into safer assets, but woes regarding the inability of ...

The US economy will largely be absent from the economic calendar today, with the exception of the ever-important TIC Long-Term Purchases report which measures the level of foreign and domestic investment in the US. A minor housing market index from the National Association of Home Builders (NAHB) will also get published about an hour later, but is not expected to impact market direction. Economic News USD - USD Flat ahead of Light News Day The US dollar was seen trading flat at the start of this week as traders began to view the lackluster performance of the US economy these past several weeks as a sign that regional economic growth will be limited. The dollar has been primarily gaining from such momentum due to the shift into safer assets. Though news has been both positive and ...

(Reuters) - Spot gold held steady around $1,550 on Tuesday, as investors fled from risky assets on fears of a spreading euro zone debt crisis, but a stronger dollar and weak equities weighed on sentiment. Euro zone finance ministers promised cheaper loans, longer maturities and a more flexible rescue fund on Monday to help Greece and other EU debtors in a bid to stop financial contagion engulfing Italy and Spain. Ministers from the 17 countries that share the European currency on Monday also vowed to safeguard stability in the euro area and promised new measures "shortly," but set no deadline. "We'll probably see a lot of support for gold from rising risk aversion due to concerns of escalating debt in Europe," said Natalie Robertson, a commodities analyst at ANZ. "Although the rising ...

The market jitters remain clearly evident with choppy trading and mixed outlook, as the euro remains confined within an unclear range awaiting the confirmation from the Greek parliament while the dollar continues to be the safer bet for worried investors. Today, the Greek parliament is expected to vote on the austerity measures and whether the package will weather the rising pressures in the streets and survive the heavy opposition. The vote needs to pass to help Greece avoid default and acquire the bailout loans and even be illegible for a new bailout. With the pending status of the July tranche for Greece and the debate on the new bailout, the progress by lenders so far is upbeat, yet investors are holding their horses on fears that the parliament might indeed block the package. France ...