Daily Market Analysis – 25th May, 2015
By FxGrow Research & Analysis Team
Euro under pressure as Greece is set to default on Debt Repayment Loans
Greece is set to default on Debt repayment loans of €1.6billion which are due to IMF next month as it does not have the funds.
Greek Interior minister, Nikos Voutsis said that Greece needs to strike a deal with its European creditors soon or it would default on repayments to the International Monetary Fund. He said "This money will not be given and is not there to be given.”
If Greece is unable to repay its loans to the IMF, it would deepen the country’s economic crisis, force capital controls and foreclosure of Greek banks.
Euro is under pressure as Greek debt issue remains unresolved trading at 1.0976 in the Asian trading session. Outcome of the elections in Spain also weigh down on Euro with expectations of low liquidity amid market holidays in the UK, Germany and the US.
In USA Consumer Price Index rose 0.1% in the month of April, while CPI YoY rate remained negative, at -0.2% in April. The annual increase in core prices remained unchanged at 1.8%.
US Core Inflation in April, excluding Food and Energy, showed the biggest gain since January 2013.
Federal Reserve Chairwoman Janet Yellen said on Friday "If the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target".
With upbeat US Inflation data and comments made by Yellen US Dollar strengthened against its major counterparts on Friday with EURUSD falling more than 200pips from its high of 1.1197
Crude Oil is trading at $59.60 on account of strong US Dollar ahead of US holiday.
Gold prices are flat in Asia at 1203.57 on the prospect of a Federal Reserve rate hike this year while Silver is down at 17.02
25th May 2015 – 08:09hrs GMT
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
By FxGrow Research & Analysis Team
Euro under pressure as Greece is set to default on Debt Repayment Loans
Greece is set to default on Debt repayment loans of €1.6billion which are due to IMF next month as it does not have the funds.
Greek Interior minister, Nikos Voutsis said that Greece needs to strike a deal with its European creditors soon or it would default on repayments to the International Monetary Fund. He said "This money will not be given and is not there to be given.”
If Greece is unable to repay its loans to the IMF, it would deepen the country’s economic crisis, force capital controls and foreclosure of Greek banks.
Euro is under pressure as Greek debt issue remains unresolved trading at 1.0976 in the Asian trading session. Outcome of the elections in Spain also weigh down on Euro with expectations of low liquidity amid market holidays in the UK, Germany and the US.
In USA Consumer Price Index rose 0.1% in the month of April, while CPI YoY rate remained negative, at -0.2% in April. The annual increase in core prices remained unchanged at 1.8%.
US Core Inflation in April, excluding Food and Energy, showed the biggest gain since January 2013.
Federal Reserve Chairwoman Janet Yellen said on Friday "If the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target".
With upbeat US Inflation data and comments made by Yellen US Dollar strengthened against its major counterparts on Friday with EURUSD falling more than 200pips from its high of 1.1197
Crude Oil is trading at $59.60 on account of strong US Dollar ahead of US holiday.
Gold prices are flat in Asia at 1203.57 on the prospect of a Federal Reserve rate hike this year while Silver is down at 17.02
25th May 2015 – 08:09hrs GMT
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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