- Greece misses Monday deadline, reform letter postponed to Tuesday morning
- UK CBI realized sales: 1 vs. 35 expected, 39 previous
- US existing home sales: 4.82M vs. 4.95M expected, 5.07M previous
- RBNZ inflation expectations on tap
Forex price action was as mixed as a bag of nuts during the U.S. session, as traders place their trades ahead of this week’s central banker speeches.
The dollar gained against the franc but lost against the pound, euro, yen, and the comdolls. It didn’t help the dollar that Uncle Sam’s existing home sales fell to a nine-month low and equities trading ended showed mixed results.
USD/JPY slipped by 24 pips (-0.20%) to 118.83 and AUD/USD inched 11 pips higher (+0.14%) to .7802 while USD/CHF closed 10 pips higher (+0.11%) to .9507 after hitting an intraday high of .9526.
Meanwhile, euro traders weren’t happy with Greece missing its deadline. Greek officials were scheduled to submit their letter outlining their reforms on Monday, but they moved the deadline to Tuesday morning instead. The delay highlighted Greece’s struggle to promise significant changes, which doesn’t bode well for the common currency.
EUR/USD gained 29 pips (+0.26%) to 1.1332 after getting beat up in early London trading, but EUR/GBP fell by another 22 pips (-0.30%) to .7330.
The pound was also under the spotlight after forex bulls ignored a CBI retail sales report clocking in its lowest reading since November 2013. Instead, investors seemed to price in a hawkish speech from BOE’s Mark Carney scheduled tomorrow at 11:00 am GMT.
GBP/USD rocketed by 86 pips (+0.60%) to 1.5459, as GBP/JPY jumped by 66 pips (+0.36%) to 183.70 and GBP/AUD rose 83 pips higher (+0.42%) to 1.9813.
Will we see a more coordinated forex price action today? The only report on the docket during the Asian session is the RBNZ’s quarterly inflation expectations report.
A lower figure than the central bank’s 2.1% previous estimates could inspire more rate cut speculations and could weigh on the Kiwi. Best look at the details of the report if you don’t want to miss out!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!