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    Players still hope for positive outcome of Greek issue, but with fewer emotions

    Players still hope for positive outcome of Greek issue, but with fewer emotions
    At this moment the market “lives” on headlines in global media. The wish to be on time and catch the wind in the sails provokes regular false starts. In the morning press reported that Tsipras had accepted creditors’ terms and euro went upward immediately. Still, the fuse disappeared rapidly, when denials emerged. In the second half of the day the market paid attention to fundamental news at last. US economic statistics were quite good – ADP showed growth of employment in private sector above forecasts, production ISM and building expenses were also better than predicted. With such support dollar succeeded to press the advance and for the second day in arrow it has consistently regained unexpected losses, sustained on Monday.

    Speaking of significant events of this week, there is only US report on labor market, excluding the referendum on agreement with creditors in Greece this weekend. Forecasts are good and yesterday’s ADP report gives a hope that expectations will be met. Some nervousness is retained due to several remarks by Janet Yellen at last session of FOMC, who expressed doubts concerning continuation of stable growth of new work places. However, after unexpected bounce on Monday, short-term prospects of dollar have improved during last days. If today the data don’t let down, then dollar will retain its growth dynamics. It should be mentioned that publication of report on labor will be postponed due to celebration of Independence Day in the U.S.A. So, publication of this report will practically finish this work week – Friday’s trades will pass against the background of low liquidity and they will be probably inactive.

     

    Trade tactics:

    It is regrettable to see market’s return to levels where our last opened position in EURUSD pair had a considerable profit and we were confident in continuation of descending movement. The retribution for self-sufficiency was cruel. Market’s short-term movements can break any trade strategies. Now we are just watching the market and understand that in fact relying on euro’s fall was correct. If today the pair can close below 1.1000, then the aim of current movement will be levels in the range 1.0850 – 1.0860.

     

    Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information.


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