Greece is expected to make its bond payment to the ECB today after the EU countries agreed on a bridge loan Friday and the necessary parliamentary approval was passed over the weekend. Substantial progress has been made with the likelihood of a Grexit declining dramatically. However, negotiations on a new loan program are only beginning and are likely to prove challenging. On the macro front, amid a quite week on the data calendar a key release will be the flash PMIs on Friday. Last week ECB President Draghi suggested he has not turned more bearish on the macro outlook, but the PMIs may tell a different story. Balance of payments data Monday should also be watched for indications on whether disruptions in global bond markets in May reduced eurozone investor appetite for foreign bonds. We favoured EUR trade remains short EURUSD.
BNPP: NZD vulnerable to a squeeze higher on any RBNZ disappointment
The RBNZ is widely expected to cut rates by 25bp on Thursday as the bank has signaled a bias to ease further at the previous meeting and subsequent weakness in data and dairy prices supports a further move. Read more in the FXWW Chatroom with a free trial.
The RBNZ is widely expected to cut rates by 25bp on Thursday as the bank has signaled a bias to ease further at the previous meeting and subsequent weakness in data and dairy prices supports a further move. Read more in the FXWW Chatroom with a free trial.