Talking Points:
- Greece Debt Talks in Focus as Eurozone FinMins Gather for Another Meeting
- Euro Gains on Deal Between Greece, Creditors May Not Have Follow-Through
- See Economic Releases Directly on Your Charts with the DailyFX News App
A quiet economic calendar in European hours will keep Greece in the spotlight as Eurozone finance ministers struggle to secure a deal between the country and its creditors. Hopes were running high early in the week after Athens submitted an updated set of proposed reforms meant to unlock a tranche of bailout funding. Traction has failed to materialize thus far however.
Markets fear that failure to overcome the impasse may lead to a Greek default and push the country out of the Eurozone, triggering as-yet unknown consequences for the currency bloc and the world economy at large. With that in mind, traders are anxiously awaiting confirmed signs of a breakthrough or a final collapse of negotiations without further room to maneuver.
If the former proves true, the Euro may see near-term gains amid ebbing uncertainty risk. Risk appetite may likewise find support, boosting higher-yielding currencies (notably in the commodity FX complex) while weighing on the safety-linked Japanese Yen. Follow-though may be limited however considering the markets’ priced-in outlook seems to favor an eventual agreement. Needless to say, a disappointment stands to yield the opposite results.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 01:30 | AUD | Job Vacancies (MAY) | 2.1% | - | 1.4% |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| 06:00 | EUR | German GfK Consumer Confidence (JUL) | 10.2 | 10.2 | Low |
| 10:00 | GBP | CBI Reported Sales (JUN) | 35 | 51 | Low |
| 11:00 | EUR | Eurozone Finance Ministers’ Meeting | - | - | High |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.1038 | 1.1118 | 1.1162 | 1.1198 | 1.1242 | 1.1278 | 1.1358 |
| GBPUSD | 1.5453 | 1.5589 | 1.5648 | 1.5725 | 1.5784 | 1.5861 | 1.5997 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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