Grexit fears and FOMC lead to risk aversion

Posted On 15 Jun 2015

Tag: EURGBP, EURJPY, EURUSD, FOMC, GBPUSD, NZDUSD, Risk Aversion, USDCHF, USDJPY

USD/JPY was quiet in Asia as there were no economic data releases. The pair traded from 123.10 to 123.56. The main driver of this pair will be Wednesday’s FOMC meeting and press conference by Fed Chair Janet Yellen. Investors will look for clues as to when the Fed will start hiking rates.

EUR/JPY opened with a gap lower at 138.12 compared to Friday’s close of 139.00. The euro fell across the board after news that a last minute meeting between Greece and its creditors on Sunday ended abruptly after talks failed. EUR/JPY traded the session between 138.11-60.

EUR/USD gapped down from the New York close of 1.1265 to 1.1211 in Asia. Support lies at 1.1150.The lack of a deal between Greece and its creditors bring the possibility of a Grexit much closer. Focus now shifts to the Eurogroup meeting on Thursday. Failure to achieve accord by Thursday could result in Greece defaulting.

GBP/USD moved down very early from 1.5575-81 due to risk aversion. Risk for sterling this week include Bank of England minutes and UK employment data. EUR/GBP was steady, between 0.7205-19.

USD/CHF was better bid, trading from 0.9281 to 0.9339 on broad USD strength.

EUR/CHF bounced from early 1.0422 low to 1.0460, probably due to SNB intervention fears.

AUD/USD opened in Asia at 0.7740, traded down from 0.7756 early high to 0.7710.

NZD/USD was soggy, remaining below the key 0.7000 level. The pair was off modestly from 0.6999 to 0.6960. Risk aversion is making it challenging to reclaim the 0.70-handle despite good local NZ data. Grexit and FOMC are keeping the NZD an easy sell.

The post Grexit fears and FOMC lead to risk aversion appeared first on Forex Circles.

Source:: Grexit fears and FOMC lead to risk aversion

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