Daily FX Trading Update: New Developments in Greek Debt Talks – Apr. 28, 2015

Daily FX Trading Update: New Developments in Greek Debt Talks - Apr. 28, 2015

The US dollar was pushed around in recent trading but still ended up mostly weaker to its FX trading counterparts. There have been no reports released from the US economy then but it looks like the pickup in risk appetite due to the developments in Greece is weighing on the lower-yielding dollar. Apart from that, traders seem eager to reduce their long dollar positions ahead of this week’s FOMC statement. For today, US CB consumer confidence data could still spark some moves, as the index is slated to climb from 101.3 to 102.6.

The euro regained more FX trading ground on the news that Greek Finance Minister Varoufakis has been told to take the backseat in the ongoing negotiations. This could pave the way for more reasonable talks and a better potential for securing a new deal for the debt-ridden nation, preventing a default and a Grexit. German import prices also came in stronger than expected with a 1.0% gain versus the estimated 0.5% uptick. There are no reports due from the euro zone today.

FX Trading News

The pound continued to climb against most of its FX trading rivals, as the relatively upbeat BOE minutes supported the British currency. UK CBI industrial order expectations came in weaker than expected at 1 versus the estimated reading of 4, but it still marked an improvement from the previous reading of 0. The UK preliminary GDP reading is up for release today and analysts are expecting to see a 0.5% growth figure.

The franc consolidated to most of its major FX trading counterparts, as traders are still waiting to hear more clues from the SNB. There have been no reports released from the Swiss economy lately and it appears that the franc might take its cue from euro zone events or risk sentiment.

The yen regained ground at the start of the week but looks ready to give up some of its gains now that the retail sales disappointed again. Earlier today, the consumer spending report showed a 9.7% annualized decline, worse than the estimated 7.4% drop and the previous 1.7% decrease. No other reports are lined up from Japan, leaving traders to price in expectations for the BOJ statement mid-week.

The comdolls took advantage of the pickup in risk appetite yesterday, driven mostly by positive developments in the Greek debt negotiations. There have been no major reports out of these economies lately but BOC Governor Poloz has a testimony coming up and New Zealand will be printing its trade balance and ANZ business confidence index in the next Asian FX trading session.

To contact the reporter of the story: James Brennan at james@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.