- Chinese banks closed on a holiday
- New Zealand visitor arrivals up 0.1% in May, 1.5% previous
- NZ credit card spending increased by 7.1% year-over-year in May
- NZ Westpac consumer sentiment index slipped from 117.4 to 113.0
- Eurogroup emergency meeting going on today
Check out those weekend gaps! Forex traders were off to a running start this week, with the euro opening higher against most of its rivals and the yen gapping down. EUR/USD kicked off at 1.1382 and is up 49 pips (+0.45%), USD/JPY opened at 123.07 and is up 5 pips (+0.05%), and EUR/JPY opened at 140.07 which is more than 70 pips up from its Friday close.
Positive expectations for today’s emergency meeting among European officials have been keeping the euro supported, as forex traders are crossing their fingers that either the Greek government gives in to pension reforms or its creditors relax their standards. The clock is ticking closer to a default anyway, which means that hopes are up for an eleventh-hour deal, although I wouldn’t rule out a potential disappointment just yet.
In terms of economic data, only a few medium-tier data points were released from New Zealand in the past few hours. Visitor arrivals logged in a 0.1% gain for the month of May, lower than the previous 1.5% jump but a gain nonetheless. Credit card spending showed a 7.2% annualized increase, slightly lower than April’s 7.3% rise. Lastly, the Westpac consumer sentiment index for the country slipped from 117.4 to 113.00, reflecting weaker optimism.
NZD/USD seems to be finding support at the .6900 handle for now and is up 14 pips (+0.20%) while NZD/JPY is higher by 23 pips (+0.27%) and closing in on the 85.00 mark. EUR/NZD advanced by 34 pips (+0.21%), GBP/NZD is down 20 pips (-0.08%), and AUD/NZD is moving sideways (+0.01%) around 1.1250.
Euro zone’s consumer confidence index is the only data point up for release in the next few hours and no change is expected from the previous -6 reading, leaving forex market watchers to be on the lookout for any updates regarding the Greek debt negotiations. In case you haven’t marked your calendars yet, here are the key dates and deadlines you need to know.
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