EUR remains flat following Greek election results

Monday, September 21, 2015

The Greek left-wing party Syriza secured a clear victory -for a second time within a year- and won the snap elections on Sunday. Syriza leader Alexis Tsipras reported that “this victory belongs to the people and those who dream of a better tomorrow and we wll achieve it with hard work”. Following ongoing political discussions overnight, a repetition of the previous coalition government between Syriza and the Independent Greeks is expected.

The euro hovered around 1.13 against the USD this morning. European equity markets posted modest gains in early trade as the CAC, IBEX and London equity benchmark indices climbed higher between 0.25% and 0.70%. The DAX missed the uptrend and slid lower by 0.20% in early trade following disappointing economic data. Germany’s PPI declined by -0.5% m/m in August missing estimates of a 0.3% drop, while the y/y figure was reported down by 1.7% in August compared to -1.3% in July.

EURUSD remains flat following Greek election result

EURUSD Curncy (EUR-USD X-RATE)   2015-09-21 08-53-51

Asian equity markets came under renewed pressure as the Nikkei index plunged nearly 2% (over 360 points) towards 18,070, while the Hang Seng index retreated 1% to retest 21,700. The Shanghai Composite index bucked the downtrend and climbed higher by 1.9% towards 3,150. UK Chancellor George Osborne plans to meet senior Chinese executives and leaders in Beijing today, as part of his 5-day visit in order to boost British trade and investment as well as strengthen his role as a leading advocate of China.

The USD index rebounded and climbed above 95.0 against  a basket of currencies in early trade. Market participants will be keeping an eye on the release of the US existing home sales data for direction. Gold has been hovering around $1140/ounce while silver has managed to hold immediate support around $15. Crude oil prices extended gains in early trade with WTI front month futures climbing by 1.8% to retest $45.50/barrel.  

WTI front month futures rebound towards $45/barrel

CL1 Comdty (Generic 1st 'CL' Fut 2015-09-21 08-55-16 

Events for today:

0001

UK

Sep

Rightmove House Prices Index

0700

DE

Aug

PPI

1500

US

Aug

Existing Homes Sales

 

All times UK Local Time

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