(1800 ET/2200 GMT) FRB St. Louis's Bullard speaks at "Emerging Leaders Venture Summit".
FX Recap
EUR/USD is supported below 1.1200 levels and currently trading at 1.1180 levels. It has made intraday high at 1.1238 and low at 1.1133 levels. The euro fell on Tuesday on month-end flows and as investors braced for the near certainty that Greece will default on a repayment to the International Monetary Fund later in the day, putting the country at risk of an exit from the euro zone. The euro shed 0.4 percent to $1.1190 as hedge funds stepped up sales. It fell more than 1 percent against the yen, before recovering to trade at 136.86 yen, though still down 0.6 percent on the day. Pair gave back previous gains and turned deep in red versus the US dollar, supported below 1.1200 levels after the preliminary consumer prices in the euro area rose at an annual pace of 0.2% during June, a tad below consensus at 0.3%. Core prices matched estimates advancing 0.8% over the last twelve months. Other data in the euro bloc showed the unemployment steady at 11.1% during June. In the meantime, and after missing today's IMF €1.6 billion repayment, Greece remains focused on the outcome of next Sunday's referendum, where according to polls, the 'No' vote is slightly up. Initial support is seen around 1.1067 and resistance is seen around 1.1218 levels. Option expiries are at 1.1150-60 (529M), 1.1185 (461M), 1.1200 (615M), 1.1240-50 (750M).
USD/JPY is supported below 123.00 levels and posted a high of 122.71 levels. It has made intraday low at 121.93 and currently trading at 122.42 levels. The major keeps its downside bias intact as the traders favoured safe-haven appeal in yen as the Greek situation continues to roil global markets. Further, the latest updates on Greece, citing that Greece once again rejected the last minute opportunity offered by European commission President Juncker just ahead of today IMF repayment deadline. Markets flocked to safety asset on this news, hence supporting the upbeat momentum in JPY. Looking ahead, market will eye US CB consumer confidence, beside all eye will be on Greece headlines which is likely to be the major market mover. Near term resistance is seen at 124.57 and support is seen at 121.48 levels. Option expiries are at 122.00 (1.4BLN), 123.70 (690M).
GBP/USD is supported above $1.5700 levels. It made an intraday high at 1.5743 and low at 1.5692 levels. Pair is currently trading at 1.5721 levels. Sterling extended its gains against the euro on Tuesday and headed for its best quarter in almost two years on a trade-weighted basis, as data showed Britain's economy grew more strongly than thought in the first three months of the year. Sterling hit an intraday high of $1.5746 after the data, but it then retreated to $1.5725 against a dollar boosted by gains against the euro, down 0.1 percent on the day. Against the euro, sterling extended gains to trade at 70.945 pence, up 0.7 percent on the day. Pair is trying to find little support in positive UK news showing that Britain's economy had grew more than previously estimated in the first quarter. Gross domestic product rose 0.4% according to the Office for National Statistics, revising its previous figure of 0.3%. Initial support is seen at 1.5624 and resistance is seen around 1.5835 levels.
USD/CHF is supported around 0.9300 levels and trading at 0.9302 levels and made intraday low at 0.9245 and high at 0.9330 levels. The Swiss National Bank Chief Jordan confirmed that the bank intervened in the FX markets on Monday as the Swiss Franc faced the risk of appreciation due to safe haven appeal. He said the bank is prepared for Grexit, while adding that the default would be extremely difficult situation for the Greek banks. The intervention yesterday was mainly to stem the rise in the CHF due to the Greece led risk aversion across the globe. Today Switzerland released KOF indicator with negative numbers at 89.7 vs 92.7 previous. Near term support is seen at 0.9279 levels and resistance is seen at 0.9428 levels.
AUD/USD is supported below 0.7700 levels and trading at 0.7677 levels. It has made intraday high at 0.7693 levels and low at 0.7658 levels. Moreover, higher gold prices on increased safe-haven bids on Greece crisis are also supports the resource-linked Aussie. However, the upside remains capped on underlying Greek concerns continues to dampen investors' sentiments, weighing on risk-sensitive currencies lower. Downward pressure has clearly eased with the strong rebound. Mixed indicators suggest sideway trading from the time being. Initial support is seen at 0.7568 and resistance at 0.7838 levels. Option expiry is at 0.7630 (339M).
