- The talks between Greek political parties finished after midnight in Athens with one issue, supplementary pensions, still outstanding
- The minimum wage will be cut by 22%
- Greek PM then went into all-night talks with Troika
- Government has been given 2 more weeks to find another 300 million in budget cuts before bail-out can be signed-off
- Chinese CPI increases sharply to 4.5%
- Bank of Korea keeps rates on hold at 3.25%
- Japan’s machinery order -7.1% MoM
- Regional stockmarkets -0.4% on average
- Gold $1734/oz; Oil $98.75/bbl
The EUR sold off on the initial Greece headlines as the market focussed on the fact that one matter was still outstanding after talks between Greek government partners. EUR/USD opened in Asia at 1.3260 and lows around 1.3215 were reached at the height of the headlines. Since then there has been a gradual recovery which has picked up pace in the last 30 mins. Tonight’s ECB meeting has been pretty much ignored. Ranges: 1.3213/78
AUD/USD has also had a whippy session. Firstly it fell alongside the EUR/USD, then a false report from Reuters on the China CPI sent AUD/USD from 1.0765 to 1.0740, but it recovered immediately as a correction was posted. The actual CPI number then sent the AUD lower but sell orders in EUR/AUD at 1.2320 helped stem the AUD selling. Ranges: 1.0735/1.0804
Cable 1.5790/1.5826; EUR/CHF 1.2092/1.2109; USD/JPY 77.00/22
