The NZDUSD opens at 0.6810.
Consumer sentiment in the U.S. has improved by even more than previously estimated in the month of June, according to a report released by the University of Michigan on Friday night. It was upwardly revised to 96.1 from the mid-month reading of 94.6 which was already up sharply from the final May reading of 90.7.
Greece has stunned European policymakers with its surprising call for a referendum next weekend on the terms of the bailout extension put forward by its European creditors even as the EUR 245 billion bailout is scheduled to expire on Wednesday.
Addressing the nation on television in Athens, Greek Prime Minister Alexis Tsipras announced that a public vote will be held on July 5 for the Greek voters to have a say on the tough reforms to be implemented in exchange for the extension of the country's bailout program. Tsipras stated in the televised address that the Greek government is being forced to accept "unbearable burdens" that would hit the job market and see tax hikes.
The proposed referendum is sure to see Greece most certainly defaulting on the repayment of EUR 1.55 billion or USD 1.73 billion of loans to the International Monetary Fund that fall due on Wednesday. This move by Tsipras will leave the all important meeting of Euro zone finance ministers on Sunday under a cloud of uncertainty as it was called the D-Day for Greece.
Global equity markets mixed, US and Europe moderately higher with UK & Asia sharply lower. Dow +0.31%, %, S&P 500 -0.04%, FTSE -0.8%, DAX +0.17%, CAC +035%, Nikkei -0.31%, Shanghai -7.40%, Hang Seng -1.81%,
Gold price is steady at $1,172.6 an ounce, Oil (WTI) is steady at $59.64 a barrel.
The current indicative mid-rates are:
NZDUSD 0.6810 -1.4%
NZDEUR 0.6170 +0.1%
NZDGBP 0.4340 -1.0%
NZDJPY 85.60 -2.1%
NZDAUD 0.8895 -0.3%
NZDCAD 0.8410 -1.2%
There are no domestic data releases today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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