Article Highlights

  • US existing home sales: 5.35M vs. 5.28M expected, 5.09M previous
  • Greece leaks proposal details
  • AU house price index on tap
  • Chinese HSBC flash manufacturing PMI expected at 49.4 vs. 49.2 previous
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With U.S. data light during the U.S. forex trading session, investor focus turned to developments on the Greek debt drama.

One of the two headlines of note was Greece’s proposal submitted over the weekend. A “leaked” report revealed that Greece’s proposal includes new taxes on the wealthy, businesses, and increased VAT rate on some items. No word yet on whether there’s concession over cuts in pension and public wages. Latest reports say that Greece PM Alexis Tsipras is expecting a deal within 48 hours of their submission.

The euro gained a few pips on this report, probably because investors are hoping that Greece’s proposal will pave the way for Greece unlocking a 7.2 billion EUR worth of bailout after engaging in more talks this week.

It wasn’t all sunshine and rainbows for the common currency though. Another headline of note was the ECB’s decision to extend Greece’s Emergency Liquidity Assistance (ELA) by another 2 billion EUR after raising it by 1.1 billion EUR on June 17 and then by 1.8 billion EUR last Friday. That’s THREE times in six days! Market players point to the alarming rate of withdrawals from Greek banks, which reportedly reached 4.2 billion EUR in the last week alone. Yikes!

This is probably why we saw intraday reversals in the euro’s price action. EUR/USD hit an intraday high of 1.1410 before coming back down to 1.1336 while EUR/JPY jumped to 140.63 before closing at 139.85. Even EUR/GBP saw a hike up to the .7211 handle before ending the day at .7166.

The Loonie bears also got some action though Canada didn’t print any reports. Commodity price action might have influenced the Loonie, as the July crude oil contract slipped by 42 cents to $59.19 while the August gold contract fell by $17.50 to $1,184.40 per ounce. In any case, the Canadian dollar ended the session weak against its major counterparts.

USD/CAD jumped by a whopping 93 pips (+0.76%) to 1.2326 while CAD/JPY fell by 71 pips (-0.70%) to 100.09 and EUR/CAD rocketed by 99 pips (+0.71%) to 1.3973. The Aussie and Kiwi didn’t have much luck against the dollar either, with AUD/USD falling by 32 pips (-0.41%) to .7726 and NZD/USD inching 10 pips lower (-0.15%) to .6868.

Will we see more comdoll weakness today? Australia is set to print its quarterly house price index, which is expected to show a 2.2% growth from its 1.9% uptick last time. China will also print its HSBC flash manufacturing PMI, which is expected to come in at 49.4 after clocking in at 49.2 last month.

These reports could influence risk trading for the next couple of hours, so make sure you stick around and watch your trades closely during the releases!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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