- Greek elections end in opposition Syriza Party victory
- Australian banks on holiday today
- Japanese trade deficit narrowed from 0.83T JPY to 0.71T JPY
- Nikkei down by 0.25% for the day
- New Zealand credit card spending up by 4.5% y/y
- German Ifo business climate index due
Euro pairs gapped lower at the start of this week’s trading, as the Greek elections ended in a victory for the anti-austerity Syriza party. This could put more downward pressure on the shared currency for the rest of the week, as increased political uncertainty could make it difficult for Greece to secure its next tranche of aid. EUR/USD is trading slightly below the 1.1200 handle and is looking at a 0.09% loss while EUR/JPY is holding steady just under 132.00.
Data has been light in the past few hours, with liquidity also down since Australian banks are closed for the holiday. New Zealand released its credit card spending report for December and reported a 4.5% annualized increase, lower compared to the previous month’s 5.1% gain.
AUD/USD is down 15 pips (-0.18%) and NZD/USD is down 9 pips (-0.13%) so far. AUD/JPY is down 0.19% and NZD/JPY is facing a 0.23% loss, as risk aversion seems to be present in the financial markets today. The Nikkei marked a 0.25% loss for the trading session.
Up ahead, the forex calendar shows that the German Ifo business climate report is the only main event for the London trading session. The index is projected to improve from 105.5 to 106.7 this month, which could allow the euro to limit its losses. Watch out for the actual release at 10:00 am GMT.
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