- Chinese trade surplus narrowed from $59.5B to $46.5B in June
- China’s exports up by 2.1% in June, first increase in four months
- Japanese May industrial production figure revised from -2.2% to -2.1%
- Japan’s tertiary industry activity index dropped by 0.7% vs. projected 0.2% dip
- Eurogroup meetings still going on today
Looks like my buddy Forex Gump was right about those weekend gaps! After Greek debt negotiations still failed to bear fruit over the weekend, most higher-yielders and the euro gapped lower against their safe-haven counterparts. EUR/USD started off at 1.1106 after closing at 1.1127 last Friday and is down pips (-0.17%), GBP/USD opened at 1.5490 and is down 14 pips (-0.09%), and USD/JPY opened at 122.75 and is trading 16 pips lower (-0.13%).
Earlier today, China reported that its trade surplus narrowed from 59.5 billion USD to 46.5 billion USD in June, lower than the projected 57.0 billion USD reading. A closer look at the components of the report, however, shows green shoots since exports picked up by 2.1% and logged in their first increase in four months. Imports were down 6.7%, which reflects weaker demand for raw material shipments from their usual trade partners.
AUD/USD is holding steady above the .7400 forex support area and is up 7 pips (+0.09%) and AUD/JPY is down 11 pips (-0.12%). NZD/USD advanced by 15 pips (+0.23%) while NZD/JPY is staying afloat around 82.50 (+0.01%).
In Japan, economic reports came in mixed, as the May industrial production figure was revised to show a smaller 2.1% decline from the initially reported 2.2% drop. The tertiary industry activity index chalked up a 0.7% tumble for the same month, worse than the estimated 0.2% decline and the previous month’s 0.1% dip.
Looking ahead, the coast is clear in terms of top-tier economic releases for the next few hours, but that doesn’t mean that there’s absolutely no forex event risk to watch out for. Keep in mind that Eurogroup leaders will convene once again to discuss the nitty-gritty of Greece’s revised proposals, particularly when it comes to the so-called privatization fund.
For now, Greek banks will still remain closed while capital controls haven’t been lifted. Euro pairs could stay inside their forex consolidation patterns while traders wait for more updates so stay tuned for any potential make-or-break moments ahead of Greece’s parliament meeting regarding bailout legislation on July 15.
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