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The euro rose against the dollar rebounded from one-month low, reached on Tuesday. The single currency was supported amid renewed hopes for a new Greek plan to help avoid bankruptcy and exit from the euro zone countries, after European leaders yesterday gave Athens a period of five days to sign a new agreement. At an emergency summit of euro zone on Tuesday, European leaders have put forward an ultimatum to Greece - it has five days to reach an agreement with its creditors from the eurozone, or waiting for the collapse of the financial system.
Meanwhile, Greece officially asked for a new three-year aid package to the European Stability Mechanism, the permanent euro zone bailout fund. If agreement is not reached in time, EU leaders will hold an emergency summit in Brussels on Sunday, during which discussed measures to minimize the consequences of a Greek exit from the eurozone.
The pressure on the euro was reported that a conference of the Eurogroup on Greece, scheduled for today, was canceled for unspecified reasons. The head of the Eurogroup Deysselblum said that contrary to the plans, a conference call will take place. Earlier, representatives of the Eurogroup Working Group has scheduled the meeting to discuss the latest proposals of Athens.
Investors are also awaiting the publication of minutes of the June meeting of the Fed on Wednesday for guidance on the timing of the primary rate hike in the United States.
The US dollar fell to a six-week low against the yen strengthens, losing more than 1%, as the collapsed Chinese stock market increased investor demand for safe Japanese currency. The Chinese stock market fell sharply on Wednesday, continuing to sell, despite the new government measures that restore investor confidence. Sales were provoked by fears of slowing second-largest economy in the world and exacerbated concerns about the risks of financial stability because of the crisis in the market.
The pound continued to fall in price against the US dollar, breaking the mark of $ 1.5400 and refreshed at least June 10 on concern the market as to what additional fiscal consolidation may delay a rate hike of the Bank of England. It is expected that the British government will introduce additional measures. Escape from the market risk was also triggered fears of a Greek exit from the euro zone and the decline in commodity prices due to panic in the Chinese markets. Little impact on the currency had data from mortgage lender Halifax. As it became known, housing prices jumped in June by 1.7 percent, compared with growth of 0.3 percent in May. In the period from April to June, the growth in housing prices accelerated to 9.6 per cent per annum against 8.6 percent in the previous three months. Martin Ellis, economist at Halifax, said the housing stock available for sale were at a record low. "This shortcoming has been a key factor in sustaining growth in housing prices at a steady pace since the beginning of 2015 - said Ellis. - Economic growth, increased employment, accelerating growth of real wages and very low mortgage rates - all of these factors support the demand for housing" . It is worth mentioning, the latest data from the Halifax report contrasted with the mortgage lender Nationwide, which last week reported that house prices fell by 0.2 percent in June compared to May, while the annual growth rate slowed down to 3.3 per cent (minimum pace for two years).
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