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EU Emergency Summit: Tough Monday?

Dear Traders,

Last Friday turned out to be a quite uneventful trading day with both major pairs initially tending downwards but ending the day unchanged against the U.S. dollar.

The euro was supported by 1.13 ahead of today’s EU emergency summit in Brussels. The market is still expecting that in the eleventh hour an agreement between Greece and its creditors will be reached. The euro therefore trades on hopes and optimism about a defining solution. However, we should not underestimate the risk if Greece fails to pay the IMF the 1.5 billion euros which is due on June 30. The outcome of the Greek debt talks will determine how the euro trades the next days. The emergency summit starts at 12:30 local time in Brussels. If no agreement is made today, the next key event risk is the special summit planned for June 25-26.

Asides from Greek debt negotiations, there is a number of U.S. economic reports this week. The most important piece of data will be Durable Goods orders (Tuesday) and the revision to Q1 GDP (Wednesday).

The British Pound knows only one direction: Upwards. The GBP/USD rallied now 10 days without any major pullback. A next resistance is at 1.60 and further 1.6150. Below 1.5835 sterling may correct its recent gains down to 1.5750. There are no major U.K. economic reports scheduled for release this week so traders should focus on the demand for U.S. dollars.

Economic data today:

10:30 EUR Eurogroup Emergency Summit

14:00 USA Existing Home Sales

We wish you a good start to the week and many profitable trades.

 

 

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