Forex news from the European morning session 13 July
News:
- EU summit reaches an agreement on Greek deal
- Merkel says she can recommend the agreement to parliament "with full conviction"
- More from Merkel: No reason to doubt timetable for Greek legislation
- Tsipras says "we fought a tough battle"
- EU's Tusk says leaders have agreed in principle to start on Greek bailout programme
- Full statement on Greece from the EU summit
- IMF head Lagarde says it's necessary to keep taking steps on Greece
- Austria's Faymann says Greek deal good for social cohesion but will be difficult to implement
- EU: All that really matters was that a Greek exit was avoided
- Italy's Renzi says Grexit was "barely avoided"
- Greek labour minister sees election by year-end
- Germany says there's still difficult steps to take before there is a new aid package
- Greek opposition party opposed to national unity government but will support a solution in nation's interest
- Tsipras tots up support in Greek parliament
- EU's Moscovici says there is a shared willingness for Greece to stay in the euro
- Greece needs €82bn-86bn for financing needs
- European parliament head Schulz says Grexit-lite is not going to happen
- Credit for SME's is at the highest for 5 years says BOE
- China can sustain medium and high speed economic growth says Li
- OPEC sees a more balanced market in 2016
- Is it really all over now we have a Greek deal?
- Pound loving its time in the post-deal limelight
- Option expiries 10am NY cut today 13 July
Data:
- Japanese industrial production May final mm -2.1% vs -2.2% flash
- Nikkei 225 closes up +1.57% at 20,089.77
We finally got a deal after a marathon session of talks and the euro held a relief-rally before markets checked the small print and took a reality check. Cue a euro tumble across the board with the pound claiming the yellow jersey
The euro trod water as we waited for the talks to produce a headline/agreement and we had EURUSD kicking its heels around 1.1135 before kicking higher to 1.1197 once the news came out. EURJPY surged to 137.81 from 136.50 with EURGBP lagging behind to 0.7203
And this was another clue to the morning's events as the reality-check kicked in and focus came back onto the small print, future of the Eurozone and interest rate hikes in the US and UK
GBPUSD had picked up an early bid above 1.5500 and when the euro turned lower EURGBP needed no excuse to tumble back through 0.7150 and 07125 support to post 0.7107 lows. Cable rallied through 1.5555 res/offers to post 1.5589 and it was pound-positive time across the board with particular gains vs yen and swiss franc before a few sellers re-appeared in the rarified air
EURUSD fell back to 1.1050 support area but has felt heavy in the rally since while EURJPY was quickly back at 136.60 giving USDJPY additional supply at 123.50 after a strong rally from 122.55 lows as the session got under way
USDCHF has found a bid as safe-haven franc status disappeared and this has also helped EURCHF find a bid into 1.0450 before rebounding to 1.0491
USDCAD has been tighter on cross-plays as have AUDUSD and NZDUSD with good supply and demand on each
So the Greek deal is done on paper at least but this isn't the end.. Just the beginning
