Greece Thrown 30 Day Bone As Last Resort June 1, 2015
IMF Pulls The Rabbit Out Of The Hat Reminds Greece They Can Ask For A Bundle Payment
It would seem like the last rabbit has been pulled out of the IMF hat yesterday as a spokesman reminds the Greeks of a last ditch option to avoid a default in 5 days.
The IMF confirmed on Thursday that Athens has the right to ask for “bundled” repayments in June. “Countries do have the option of bundling when they have a series of payments in a given month … making a single payment at the end of that month,” as per an IMF spokesman. Who added that the last country to do so was Zambia three decades ago.
Having said that, you know its bad when they remind us who did it last and just how long ago that was. So for now all pressure is off and the negotiations will continue.
Interview With Richard Wolff
I found this interview very interesting and thought I would share as Professor Wolff described what we face in real terms of social inequality amongst several other issues that plague the world today. I know its a long program but well worth watching.
EUR/USD Finishes Second Push
Today I will be bias for the third push looking to see the 1.0928 level hold during Asia for a bounce and retest during the London session. Having said that, noting all the resistance holding it below the 1.1000 level is worth watching because the 30 day lifeline offered may or may not be taken up by the Greeks. They will have to ask and I havent seen that as of yet. I will only be open for a short if there is conviction below 1.0928 during the London session.
GBP/USD Weakness Continues
The GBP/USD is still showing weakness extending pushes even if it seems to be slowing down a bit. I will still be bias for the short today but in these circumstances they could turn and run a short squeeze at any time so I will be open for the long from 1.5245 if I am not already short. The best level to short is 1.5298 around the psych 1.5300 however I would be happier to see it tested and fail before a retest during the London session.
EUR/JPY Extending Pushes
As long as the EU is heading up the EUR/JPY should follow potentially testing the May highs before they make a turn. There isnt much for topping as of yet so I will be bias for the next push up as long as the 135.84 level holds during Asia. I will still be open for the short at 136.40 considering the extended move but prefer to be long waiting for a break today.
Forex News Today
The calendar is busy today starting with Manufacturing PMI from the Euro Zone. Most are expected flat with the exception of Italy expecting a small drop. I will only expect a sustained move if German figures drop close to or below 50 which is possible but not probable. There is also German CPI data released all day that could get them moving if its weakens with the final figures released at the beginning of the NY session.
The UK also has Manufacturing PMI expected to rise so sentiment should be positive until the release. If it does disappoint then we should see a larger move depending on how close to 50 it gets. If it does manage to surprise to the upside the sentiment should continue even if its a limited move due to GBP weakness.
The US has Personal Spending and PCE data early but I wont expect much baring a large miss because of two Fed member speeches not long after. Later in the day they have Mfg PMI and ISM Mfg PMI as well. The higher impact data should be ISM data but will need a sizable miss to get them going. Expectations are for an improvement so my thoughts are a disappointment will have more potential for a sustained move.
Aussie traders have the RBA Interest Rate decision to watch tomorrow and from what I have seen they have a low probability of lowering rates again which should be AUD positive unless there is something negative in the statement.
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