The US dollar was off to a running start this week as risk aversion settled in the markets. Greeks voted against the current bailout proposal, which involves further austerity measures. There were no reports released from the US on Friday since markets were closed ahead of the Fourth of July weekend. Today, the ISM non-manufacturing PMI is up for release and a climb from 55.7 to 56.2 is expected.
Euro pairs gapped lower against their forex counterparts in today’s trading after the Greek referendum resulted in a “No” vote for austerity and the current bailout proposal. German factory orders and euro zone Sentix investor confidence data are up for release today and weak readings could lead to sharper euro declines.
The pound was also on weak footing last week and at the start of this week, despite stronger than expected services PMI from the UK. Today, there are no major reports lined up from the UK, which suggests that the pound could take its cue from overall market sentiment.
The franc followed in the euro’s footsteps and sold off against its forex counterparts ahead of more uncertainty in Greece. Swiss CPI is up for release today and a mere 0.1% uptick in price levels might be seen. Apart from that, updates on the Greek debt talks could continue to push franc pairs around.
The yen took advantage of the run in risk aversion as it advanced against its currency rivals. There have been no reports released from Japan recently, but the selloff in the Chinese equity market has led investors to move their funds to the safe-haven yen.
Commodity Currencies (AUD, NZD, CAD)
The comdolls sold off at the start of the week, following the sharp decline in oil prices last week. Iran pledged to double its oil production once the EU sanctions are lifted, putting additional pressure on crude oil and other commodities. Aside from that, the selloff in the Chinese stock market has been weighing on the Aussie and Kiwi.
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