Skip to content
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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Euro to Look Past CPI Data as Greece Headlines Dominate the Spotlight

Euro to Look Past CPI Data as Greece Headlines Dominate the Spotlight

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Euro to Look Past May Inflation Data, Focus on Greece-Related News Flow
  • Australian Dollar Gains as RBA Disappoints Bets on Dovish Shift in Rhetoric
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The preliminary set of May Eurozone CPIfigures headlines the data docket in European trading hours. The headline year-on-year inflation rate is expected to rise to 0.2 percent, the highest in six months. The outcome seems unlikely to meaningfully drive the Euro however considering its limited implications for near-term ECB policy bets.

Rather, the single currency will look to Greece-related news-flow for direction cues. Negotiations have entered the proverbial 11th hour amid worries that Athens may fail to repay over €300 million due to the IMF on Friday, triggering events leading to insolvency and a possible ejection from the Eurozone.

Key figures from the lender side of the impasse – German Chancellor Merkel, IMF Managing Director Lagarde, ECB President Draghi, French President Hollande and EC President Juncker – met to develop a list of conditions for Greece to meet in exchange for funding in a last-ditch attempt to avoid deeper crisis. Markets will keep a close eye on follow-up headlines to gauge how the effort will progress in the days ahead.

The Australian Dollar underperformed in overnight trade, rising over 1 percent on average against its top counterparts, following the RBA monetary policy announcement. While policymakers’ decision to keep the cash rate unchanged at 2 percent was widely expected, a parallel drop in the Aussie and front-end bond yields in recent weeks hinted at pre-positioning for a dovish forward guidance turn. That did not materialize, with Governor Glen Stevens and company keeping to a non-committal, data-dependent posture.

New to FX? START HERE !

Asia Session

GMTCCYEVENTACTEXPPREV
22:45NZDTerms of Trade Index (QoQ) (1Q)1.5%1.7%-2.3%
23:30AUDAustralian Weekly Consumer Confidence Index113.5-113.5
23:50JPYMonetary Base (YoY) (MAY)35.6%-35.2%
23:50JPYMonetary Base End of period (¥) (MAY)307.4T-305.9T
01:30JPYLabor Cash Earnings (YoY) (APR)0.9%0.3%0.0%
01:30JPYReal Cash Earnings (YoY) (APR)0.1%--2.7%
01:30AUDBoP Current Account Balance (1Q)-10.7B-10.8B-10.2B
01:30AUDNet Exports of GDP (1Q)0.500.000.70
04:30AUDRBA Cash Rate Target (JUN 2)2.00%2.00%2.00%

European Session

GMTCCYEVENTEXPPREVIMPACT
07:55EURGerman Unemployment Change (MAY)-10K-8KMedium
07:55EURGerman Unemployment Rate (MAY)6.4%6.4%Medium
08:30GBPNet Consumer Credit (APR)1.0B1.2BLow
08:30GBPNet Lending Sec. on Dwellings (APR)1.9B1.8BLow
08:30GBPMortgage Approvals (APR)63.5K61.3KMedium
08:30GBPM4 Money Supply (MoM) (APR)-0.3%Low
08:30GBPM4 Money Supply (YoY) (APR)--0.6%Low
08:30GBPM4 Ex IOFCs 3M Annualised (APR)4.0%2.5%Low
08:30GBPMarkit/CIPS UK Construction PMI (MAY)55.054.2Medium
09:00EUREurozone PPI (MoM) (APR)0.1%0.2%Medium
09:00EUREurozone PPI (YoY) (APR)-2.0%-2.3%Medium
09:00EUREurozone CPI Estimate (YoY) (MAY)0.2%0.0%High
09:00EUREurozone CPI Core (YoY) (MAY A)0.7%0.6%High

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3
EURUSD1.07931.08731.09001.09531.09801.10331.1113
GBPUSD1.50501.51551.51781.52601.52831.53651.5470

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES