Forex news for February 16, 2016 US edition:
- EU meeting ends after Greece says it won't take orders on bailout
- Dijsselbloem says Greece must accept extension and extension means reforms
- Greek fin min expects deal within 48 hours
- Rejected draft text said that Eurozone would make use of flexibility in current program
- Eurogroup discussed unreasonable and unacceptable draft text - Greek official
- Dijsselbloem: "Any new program for Greece would not look much different than the current one"
- WTI crude up 25-cents to $52.83
- Gold down $2 to 1229
- US closed for holiday
- NZD leads, EUR lags
The US was on holiday so liquidity was light. All the focus was on talks in Brussels between Greece and the Eurogroup. When they took a turn for the worse, the euro dropped to 1.1320 from 1.1410 in a more-or-less one way move. Earlier, there was talk that a deal was nearly done so there was some deep disappointment.
After Greece's finance minister came out and had some soothing words, there was a bounce up to 1.1360 but we have fallen back to 1.1346.
In earlier European trading, cable was on the defensive despite talk form the BOE that the next move in rates would be higher. Offers at 1.5440 stalled an earlier rally and London traders began to sell. The first push was down to 1.5365 and then a second wave down to 1.5337 before a 25 pip bounce late.
USD/CAD was slightly higher to 1.2464 despite a mild bounce in oil. Liquidity would have been super-low in the pair with most of Canada on holiday as well.
The kiwi was strong early and that pushed AUD/NZD to an all-time low. AUD/USD couldn't get above 0.7800 and skidded to 0.7752.
Returns vs USD
