- Japanese all industries activity index up by 0.1% in Feb vs. -0.9% estimate
- Nikkei down 0.83% for the day
- Volatility among EUR pairs spurred by speculations on Eurogroup meetings
- SNB head Thomas Jordan set to testify today
It looks like forex traders are biting their nails ahead of the Eurogroup meetings today! Most major pairs sat tight inside their current ranges while euro pairs were pushed around by speculations on the potential outcome of the Greek debt talks. As my buddy Forex Gump mentioned in his Greek drama update, something’s got to give!
According to a few EU officials, not much progress has been made yet, as neither the Greek government nor its creditors are willing to stand down. Heck, even German Finance Minister Schauble isn’t counting on an agreement anytime soon, sparking more buzz about a default or a possible Grexit.
EUR/JPY is down 15 pips (-0.12%) and EUR/USD is flat at 1.0822 after dipping to a low of 1.0782 earlier on. EUR/AUD is holding on to the 1.3900 handle (-0.06%) while EUR/NZD is enjoying a 53-pip lead at 1.4300 (+0.43%), thanks to yesterday’s downbeat remarks from RBNZ Assistant Governor McDermott.
Economic data has taken the backseat to all these speculations, as the Japanese yen barely drew any support from a stronger than expected Japanese all industries activity index. The report showed a 0.1% uptick for February instead of the estimated 0.9% decline, reflecting a small pickup in economic performance. Despite that, the Nikkei ended 0.83% lower for the trading day since the uncertainty surrounding Greece’s debt situation has dampened risk appetite.
Apart from the Eurogroup meetings, another potential market-mover is SNB Thomas Jordan’s testimony at 9:00 am GMT. Although the central bank head already announced their plans to reduce exemptions for charging negative deposit rates, additional remarks on the Swiss franc or their monetary policy bias could still trigger strong moves for the currency. Do watch out for the release of the German Ifo business climate index around the same time as well.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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