MORNING BRIEFING: Greece denies reports to renegotiate EU-IMF aid package; Euro still struggling.

[RTFX-Trading]

MORNING BRIEFING: Greece denies reports to renegotiate EU-IMF aid package; Euro still struggling.

What’s new:
Forex: Yen falls against Aussie, as Euro continues to struggle.
China: Hints at readiness to let Yuan rise.
Japan: BOJ leave rates unchanged.
Euro-zone: Greece cannot borrow at current rates for long says Greek Finance Minister.
Euro-zone: Greece denies seeking to renegotiate EU-IMF deal.
United States: White House says Yuan to be discussed in Obama/Hu talks.

Today:


Overnight Rates and Indices:
EURUSD: 1.3408 – 1.3357.
USDCHF: 1.0721 – 1.0680.
GBPUSD: 1.5275 – 1.5227.
EURJPY: 126.16 – 125.23.
USDJPY: 94.27 – 93.56.
DowJones: 10’970 -0.03%  
NASDAQ: 2’437 +0.30%
S&P 500: 1’189 +0.17%
Nikkei: 11’293 +0.09%.
Shanghai: 3’148 -0.33%,
Gold: $1’137.3
Crude Oil: $86.78

Comments:

The Yen lost some ground earlier on Wednesday as the Australian dollar pushed to a fresh 18-month high and ‘carry trades’ remained firm, while worries about Greece's debt continue to dominate the headlines and consequently the Euro continues to struggle.

The Aussie against the Yen increased to 87.52 earlier, getting closer to the Fibonacci resistance level at around 87.70, which is the 61.8% retracement of the fall from 107.80 to 55.11.

The Euro came under renewed pressure following media reports that Greece wanted to renegotiate the deal struck for joint EU-IMF aid. Greece denied these reports today, however this has little impact. The Euro fell to 1.3357 today versus the US Dollar, while only gaining up to 126.16 versus the Yen, after falling from 127.37 to 125.23 from yesterday.

Meanwhile from Asia, the Bank of Japan kept rates on hold on Wednesday at 0.10%, and said that the economy is picking up. The Central Bank will keep its monetary policy very easy, while reiterating their commitment to combat deflation.

White House Press Secretary Robert Gibbs told a news briefing that the issue concerning the Yuan will be raised by President Obama when he meets Chinese President Hu in Washington next week. US Treasury Geithner is however confident that China would see that it is in their own interest to make its currency more flexible, while also saying that the global economic recover y “looks quite strong”.

Have a nice day.

Emman Xuereb
Trading Desk
RTFX Ltd
Risk Disclaimer