rahul.khanna's picture

Outlook for currencies - EUR, USD & GBP

German IFO business confidence fell for a second consecutive month to 107.40 in June compared to 108.50 in May. However, focus will turn to the Eurogroup finance ministers (emergency) meeting today, ahead of a series of meeting planned this week, with markets awaiting a clear resolution on Greece. A breakthrough on Greece will provide some upside for EUR, but while QE continues significant upside will be limited

Final revision for US Q1 GDP growth rate will be out at 1230GMT with an upgrade expected on the last estimates. US durable goods data, yesterday, disappointed and GDP data would at least need to match expectations to avoid a fall. With little significant data going forward this week USD may not move significantly.

GBP was buoyed by BOE's Weale comments on Tuesday- BOE should look to raise interest rates 'as early as August'. With relatively low unemployment rate and rising earnings, GBP seems to provide a potential for further upside.