News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • RT @KyleR_IG: Certainly a highlight of my career. If I was smart enough, I would have made a wisecrack about #Evergrande. #earthquake http…
  • RT @FxWestwater: Australian Dollar Forecast: Evergrande, PBOC, Risk Trends, BoJ on the Radar Link:…
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • The Bank of England should scrap the last of its quantitative easing plans and start preparing for an increase in interest rates. All 9 members of the shadow monetary policy committee said the Bank should end the QE programme early, with almost £50bln left - The Times
  • The Nasdaq 100 gains modestly after Monday's sharp losses, but sentiment remains cautious ahead of the FOMC rate decision. Get your market update from @Tams707 here:
  • Ethereum continues its sharp slide, currently down more than 4.7% on the day $ETHUSD #Ethereum
  • Rising energy prices weigh on European policymakers as consumers fear higher prices, carbon dioxide shortages (CO2), and cold winter. Get your market update from @Tams707 here:
  • US President Biden: - Will discuss a trade deal with UK PM Boris Johnson - I do not want to see a closure of Irish borders
  • AUD/USD continues to trend lower ahead of tomorrow's FOMC meeting. Further $USD strength could bring the August low into play $AUDUSD
  • Nasdaq Ekes Out Small Gain As Focus Turns to FOMC, Uber Flies On Bullish Guidance $NDX $UBER #trading #FED
Euro, US Dollar Ebb as Traders Await Greek News, FOMC Meeting

Euro, US Dollar Ebb as Traders Await Greek News, FOMC Meeting

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EURUSD pinned just above $1.1200 to start the week.

- USDJPY yet to clear key ¥123.90 hurdle.

- See the June forex seasonality report.

Markets have opened quiet as the calendar turns into the second half of June, with traders eagerly awaiting concrete developments in the Greek debt negotiations (which really could occur at any time, but probably closer to June 18 and 19 when supranational Euro-Zone groups will meet) and the Federal Reserve's June policy meeting (on Wednesday). As we've already seen today, interim quibbling between Greece and her creditors has little impact on price; it is possible that headlines are dismissed until some semblance of finality is achieved - good or bad.

In a sense, while it's important to pay attention to headlines regarding Greece the next few days, it's equally important to not read too deep into them.

The theme with the clearer time horizon - the June FOMC meeting in two days - is a veritable powder keg sitting in the middle of the week. The recent stretch of US economic data has lifted growth momentum indicators to their best levels in four-months (namely the Citi Economic Surprise Index), and the market has started to price in the possibility of an October 2015 rate hike.

Traders should pay particular attention to the tone employed in the policy statement on Wednesday as it could reveal a rough outline of if and how many times the Fed will raise rates in the second half of the year. If policymakers find recent data sufficient to declare the Q1'15 slowdown temporary in nature, then markets may be too dovish on the Fed's rate hike prospects - something that could prove to be a boon for the greenback.

See the above video for technical considerations in EURUSD, USDJPY, and the USDOLLAR Index.

Read more: EUR/USD at Risk as Positioning Thins, Greece and FOMC Share Limelight

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.