The currency market on Wednesday is quite impulsive. In Asia the euro/dollar rate renewed from a minimum of 1.0862 to 1.0928. The pound/dollar rose to 1.5436. The euro and the pound have lost all their profits gained on the dollar. The euro/dollar is trading around 1.0872, whilst the pound dollar is around 1.5379.
More negotiations regarding the Greek debt problem are underway in Brussels today, so nervousness is mounting by the hour. Greek negotiations with their creditors are ongoing, but there’s no outcome as of yet. The Greek minister of finance, Yanis Varoufakis, expects an end to the agreement within the deadline and a settling of the debt to the IMF. That’s the hope. The ECB has left the limit of financing for Greek banks as part of their Emergency Liquidity Assistance (ELA) unchanged at 80.2 billion euros.
The economic calendar this evening is empty. The calm could be quashed by positive or negative news from Greece or the Bank of Canada. The central bank will let its interest rate decision be known at 17:00 EET. Large fluctuations on the Canadian will affect the euro and pound via the EUR/CAD and GBP/CAD crosses.
Taking into account that the euro dollar and pound/dollar corrected in the first half of the day, they could just as easily head lower than their intraday minimums by 30-50 points.