Daily FX Trading Update: Event Risk from Weekend Eurogroup Meetings – June 26, 2015

Daily FX Trading Update: Event Risk from Weekend Eurogroup Meetings - June 26, 2015

The US dollar consolidated against most of its FX trading rivals in recent sessions, as data from the economy came in mixed. Personal spending came in better than expected with a 0.9% gain while the personal income figure fell short of expectations at a mere 0.5% uptick. The flash services PMI was also weaker than expected, as the reading fell from 56.2 to 54.8, reflecting slower industry expansion. For today, only the revised UoM consumer sentiment figure is due and no revisions are expected for the initially reported 94.6 figure.

The euro managed to hold steady against the dollar but was still under heavy selling pressure against some of its FX trading counterparts. There have been no signs of a deal between Greek government officials and its creditors, increasing the odds of the debt-ridden nation defaulting on its loans and exiting the euro zone by next week. Germany’s GfK consumer climate index dipped from 10.2 to 10.1 as expected, but it appears that euro traders are more interested in Greek debt developments.

The pound managed to regain a bit of ground in recent FX trading sessions despite weaker than expected CBI realized sales data. The index fell from 51 to 29 versus the projected 32 reading. There are no economic reports lined up from the UK today but BOE Governor Carney has a testimony lined up later on.

The franc was also stuck in consolidation, as there were no reports to push the Swissy around in recent FX trading sessions. Traders are still waiting for updates on the EU meetings between Greece and its creditors before deciding how to play the franc. There are still no reports lined up from Switzerland today.

Japan released a bunch of economic reports in today’s Asian trading session, reflecting small improvements in the economy. The national core CPI came in better than expected with a 0.1% gain versus the projected flat reading while household spending showed a 4.8% jump instead of the estimated 3.5% increase. The unemployment rate held steady at 3.3% as expected while the Tokyo core CPI showed a 0.1% uptick as expected.

Commodity Currencies (AUD, NZD, CAD)
Comdolls got a good boost in yesterday’s sessions after the PBOC ramped up liquidity in their system. However, New Zealand’s trade balance released earlier today erased some of those wins, as the underlying data reflected another downturn in both imports and exports. There are no other reports due from the comdoll economies today.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.