Yesterday, the pair EUR/USD climbed 0.6% compared to the opening price of $1.10098. Ending the trading session, the price closed at $ 1.10747.
The market is still closely watching the process of the Greek debt negotiations. European leaders have extended to Greece last Sunday (12th July) to decide whether to accept the conditions of the creditors or not. Yesterday (8th July), the government submitted a request to the European Stability Mechanism bailout fund to lend an unspecified amount “to meet Greece’s debt obligations and to ensure stability of the financial system”. It promised to begin implementing tax and pension measures sought by creditors as early as Monday.
The head of the Eurogroup of finance ministers of the 19-nation currency area, Jeroen Dijsselbloem, asked the European Commission and the European Central Bank to evaluate the loan request, assess Greek debt sustainability and study whether Greece poses a risk to the financial stability of the euro zone.
Meanwhile, the European Central Bank (ECB) will not change the ceiling emergency liquidity assistance (ELA) to Greece until Sunday’s meeting this week. The Greek bank also announced it will not open until next Monday (13th July). This means, the life of the Greek banks depend on the upcoming negotiations. Continuous missing out the “deadline” makes this Sunday meeting increasingly gloomy. Investors are difficult to predict whether Greece accepts the conditions of the lenders or not.
Yesterday, the Fed also released the meeting minutes, but the market seems not to react too strongly with this event. Maybe investors were too boring with messages like “the U.S economy is recovering”, “likely to raise interest rates in 2015” and “will act depending on the economic data” .
After releasing the FOMC minutes, Federal Reserve Bank of San Francisco President John Williams said he expects the Fed to raise interest rates this year, playing down international risks to a U.S. economy he said remains on a “solid trajectory.”
“I still believe this will be the year for liftoff, and I still believe that waiting too long to raise rates poses its own risks,” Williams, a voting member of the Federal Open Market Committee this year, said Wednesday in prepared remarks before a conference in Los Angeles.
The speech has no special remarks, ignoring uncertainties in Greece and China, making investors more closely watching to the Fed Chairman Janet Yellen tomorrow (10th July).
Currently at 3:40 pm GMT+7, the pair EUR/USD is trading at $1.10422, down 0.3% compared to the opening price $1.10746, towards the support at $1.09700.