Forex news for US trading on June 26, 2015:
- Greece rejects 5-month deal
- Tsipras says Greece will not be blackmailed
- Senior EU official: Chance of a deal with Greece on Sat higher than 50%
- Syriza MP says it's time for the "big no"
- Troika hardliners push back
- June 2015 US Michigan consumer sentiment final 96.1 vs 94.6 exp
- Baker Hughes US rig count -3
- S&P affirms France, retains negative outlook
- CFTC Commitments of Traders positioning data
- Greek stocks +2.0%
- WTI crude oil -0.12 to $59.58
- Gold up $1.40 to $1170.50
- S&P 500 up 2 points to 2095
- CHF leads, AUD lags
The US dollar caught a strong bid at the start of US trading. It wasn't straightforward but I outlined three reasons why.
EUR/USD was choppy but quickly fell to 1.1154 from 1.1200, but yesterday's low held and then the pair bounced all the way back to 1.1195. A second wave of selling hit and broke yesterday's low, running stops down to 1.1130. Once again it bounced, however, and we finished at 1.1160 despite signs of dicey negotiations this weekend.
USD/JPY was a bit more straightforward as it rallied to 123.98 from 123.40 in a steady move before consolidating into the weekend.
Cable hit a session low of 1.5710 early in US trading but couldn't maintain any momentum and quickly bounced to the US high at 1.5760. From there it was all consolidation.
USD/CAD was on the defensive despite commodity weakness. The loonie has been all over the place this week. It ripped to 1.2400 then plunged back to 1.2311, finishing on the lows. I look to oil settlement flows as the culprit today, or other lumpy flows ahead of quarter-end and holidays in the US and Canada next week.
AUD/USD was on the floor on worries about China after the rout in Shanghai overnight. The low was 0.7631 but bids finally materialized early in New York in a mild grind back to 0.7652.
Have a great weekend!
