USD Trading Outlook (15-06-2015)

Euro and stocks slide mildly as Greece again dominates headlines. This time talks collapsed after just 45 minutes since Greece rejected any additional reforms in pension funds and VAT increases. Additionally, Merkel also talked down the EUR as she mentioned that a weak currency helps the region’s economy through exports. This week, the US FED will release its monetary policy and statement. Although a rate hike is highly unlikely this time, investors will focus on any clue on upcoming moves.

Monday will also feature ECB president Mario Draghi testifying before the European Parliament and comments that might move the market are very likely.

A busy week also for the UK, which will release its CPI and retail sales data. Meanwhile the GBPUSD jumped to the upside until facing resistance at 1.5600. Sentiment remains very positive for the Pound and additional advances cannot be ruled out in the medium to long term.

The USD/JPY pair has retraced sharply last week, after posting a fresh multi-year high of 125.85 earlier this month on the back of a strong US Nonfarm Payroll report in May.

Data wise there is not a lot coming out of Europe today, but the US session will bring the release of manufacturing and industrial production readings.

Trading Quote of the Day: “In trading, its not about how much you make, but how much you don’t lose” – Bernard Baruch