Euro rebounds above 1.12 ahead of crucial Eurogroup meeting

Wednesday, June 24, 2015

Euro-area Finance Ministers meet in Brussels today to discuss the remaining modifications regarding the Greek proposal for aid package ahead of the crucial EU Summit on Thursday. Furthermore, the ECB’s Governing Council may discuss further emergency funding (ELA) for Greek banks. According to Bloomberg, it seems that reviews of the liquidity situation of Greek banks should be carried out on a daily basis based on the recent pace of deposit outflows from the Greek banks. European equity markets continued their strong upside momentum and climbed higher this morning. The CAC, DAX and London equity benchmark indices gained between 0.20% and 0.40% in early trade.

There was a sharp sell-off in the European currency yesterday as the euro plunged and reached a low at 1.1135 to finish the trading session at 1.1167. The ongoing uncertainty regarding the Greek debt issues weighs heavily on market sentiment despite the recent rally in the European equity markets. This morning, the euro edged higher and rebounded above 1.12 against the US dollar.

EURUSD rebounds above 1.12

EUR Curncy (Euro Spot )  Daily 26 2015-06-24 08-54-27

The French economy grew by 0.6% in Q1 2015 in line with analysts’ expectations. Market participants will be keeping an eye on the release of the German IFO business survey this morning as well as US GDP and personal consumption data later today. The USD index rallied yesterday and hit 95.6 against a basket of currencies. This morning, the USD index hovered around 95.20 ahead of the release of the key US GDP figures.    

France's GDP figure over 15 years  

FRGEGDPQ Index (France GDP Chain 2015-06-24 08-55-55

Asian equity markets continued their strong uptrend. The Nikkei index climbed 0.30% above 20,870. The Hang Seng index rose 0.45% towards 27,450. In the US, the NASDAQ hit a new record high at 5163.45 to end the session at 5160.

NASDAQ hits new record high

CCMP Index (NASDAQ Composite Ind 2015-06-24 08-57-18

Crude oil prices climbed higher this morning ahead of the release of the weekly EIA oil inventories data. WTI front month futures rebounded above $61 per barrel and Brent front month futures rose towards $65 per barrel.

Events for today:

0900

DE

Jun

Ifo Survey

1330

US

Q1

GDP & Personal consumption

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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