Forex Major Currencies Outlook (Apr 22, 2015)

Updates on the Greek debt talks and potential scenarios continued to keep traders on their toes, but today’s release of the US existing home sales and crude oil inventories report could pave the way for extended dollar moves.

EUR

The euro traded carefully against its forex counterparts, as traders are still awaiting the outcome of the Eurogroup meetings later this week. Greek government officials have been given until the end of the week to submit their latest set of revised economic reforms before securing the next set of bailout funds and avoiding a default. It appears that traders are hopeful that the creditors would relax some of the requirements or forgive a part of Greece’s debt in order to prevent a crisis. Data from the euro zone was mixed, as the German ZEW index slumped from 54.8 to 53.3 while the euro zone ZEW index improved from 62.4 to 64.8.

GBP

The pound was stuck in consolidation to most of its forex counterparts, with traders staying on their toes ahead of the release of the BOE minutes in today’s London trading session. A shift to a less hawkish bias is expected, as inflation and employment reports haven’t been impressive. However, if BOE Governor Carney retains his upbeat outlook, the pound might be able to resume its climb.

CHF

The franc struggled to regain ground in recent trading due to the lack of top-tier reports and relevant updates. Swiss ZEW economic expectations data are up for release today and the index is slated to improve from the previous -37.9 reading. If so, the franc might be able to regain ground.

JPY

The yen weakened to the dollar and most of its forex rivals when risk appetite picked up in recent trading. There have been no major reports released from Japan then while today’s trade balance showed a stronger than expected reading. No other reports are lined up from Japan, which means that risk sentiment could take over.

Commodity Currencies (AUD, NZD, CAD)

The comdolls had a strong start today, as Australia’s CPI readings came in line with expectations. Quarterly CPI held steady at 0.2% while the trimmed mean CPI showed a 0.6% reading as expected, dashing hopes of a rate cut in the next policy meeting. New Zealand visitor arrivals data is due in the next Asian trading session.

By Kate Curtis from Trader's Way