Morning View: Greece is the Word

May 19, 2015

“You’re a fake and a phony and I wish I never laid eyes on you.”

Was that Sandy or was that Europe…?

Back in decision making vogue, Greek finance minister Yanis Varoufakis appeared on Greek television this morning to ‘reassure’ the public that the country is handling it’s debt issues in a positive manner. He assured the public that Greece was very close to a deal with its international creditors which would allow the rest of the bailout aid funds to be unlocked.

More importantly for forex markets, Varoufakis went on to say that the country has no thoughts on returning to the Drachma and that they were committed to the Eurozone and the single currency. “Another currency is not on our radar, not in our thoughts” he said.

Greece is sure to pay it’s creditors with yet more borrowed money to kick the can that little bit further down the road again. EUR/USD continues to cautiously rally (or move in correction mode at least) with markets expecting a last minute deal.

EUR/USD Daily:
eutue
Click on chart to see a larger view.

EUR/USD is entering a zone where some sellers will be waiting to come into the market but price is holding up alright so far.

———-

On the Calendar Today:
Monetary Policy Minutes out of Australia this morning, followed closely by Inflation data from across the ditch in New Zealand which will surely move the two.

German ZEW is always a big one for the Euro later on as well.

Tuesday:
AUD Monetary Policy Meeting Minutes
NZD Inflation Expectations

GBP CPI
EUR German ZEW Economic Sentiment
USD Building Permits
CAD BOC Gov Poloz Speaks

———-

Chart of the Day:
In the Technical Analysis section of the Vantage FX News Centre we have been speaking about the USD/CAD demand zone price was approcahing. On the back of renewed USD strength, we’ve had some action out of the zone.

USD/CAD Daily:
uctue1
Click on chart to see a larger view.

It took a couple of touches (which is never usually a good thing in terms of support holding) but we got a bounce in the end.

USD/CAD 4 Hourly:
uctue2
Click on chart to see a larger view.

As you can see on the 4 hourly chart, price still has plenty of potential to the upside within the short term channel, especially if you interpret the pattern as a higher time-frame bull flag.

Trade with a Vantage FX live forex account. Leave a comment below or mention @VantageFX on Twitter.

Dane Williams – @VantageFX

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