Euro Shrugs Off Greece Deadlock Despite Seemingly Growing Risks
27 Apr 2015 06:29, GMTTalking Points:
- Euro Shrugs Off Lackluster Ecofin Meeting Despite Rising Greece Risks
- Kiwi Dollar Gains with Bond Yields, Hinting at Bets Against RBNZ Cut
- See Economic Data Directly on Your Charts with the DailyFX News App
Currency markets were largely mired in consolidation mode in overnight trade despite seemingly ominous cues from the weekend’s Ecofin meeting in Riga. Newswires suggest the talks broke down amid procedural disputes between Greek Finance Minister Yanis Varoufakis and his counterparts, with apparently little time devoted to matters of substance.
The markets’ complacency despite seemingly growing Greece-fueled instability risk is surprising. Perhaps investors are holding out hope for a move to sideline Mr Varoufakis and deal with Prime Minister Alexis Tsipras directly, which some reports suggest may be more receptive to compromise. In any case, the Euro looks relatively unfazed thus far, with prices edging toward the top of their recent range against the US Dollar.
The New Zealand Dollar narrowly outperformed, rising as much as 0.5 percent on average against its leading counterparts. The move played out against backdrop of an increase in the island nation’s benchmark 10-year bond yield, hinting the move may have reflected speculation that the RBNZ will not cut interest rates at this week’s policy meeting.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 1:30 | CNY | Industrial Profits (YoY) (MAR) | -0.4% | -8.0% |
European Session
| GMT | CCY | EVENT | EXP/ACT | PREV | IMPACT |
|---|---|---|---|---|---|
| 6:00 | EUR | Import Price Index (MoM) (MAR) | 0.4% | 1.4% | Low |
| 6:00 | EUR | Import Price Index (YoY) (MAR) | -2.0% | -3.0% | Low |
| 7:00 | CHF | SNB Sight Deposits | - | - | Low |
| 10:00 | GBP | CBI Trends Total Orders (APR) | 4 | Low | |
| 10:00 | GBP | CBI Trends Selling Prices (APR) | 2 | 4 | Low |
| 10:00 | GBP | CBI Business Optimism (APR) | 19 | 15 | Low |
| 12:00 | EUR | ECB’s Constancio Speaks in Brussels | - | - | Medium |
| 13:45 | EUR | ECB Announces Asset Purchases | - | - | Medium |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.0623 | 1.0738 | 1.0806 | 1.0853 | 1.0921 | 1.0968 | 1.1083 |
| GBPUSD | 1.4815 | 1.4975 | 1.5081 | 1.5135 | 1.5241 | 1.5295 | 1.5455 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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