Euro remains pinned on Greece

The main theme in the FX space was a weaker greenback as investors continue to Fedspeak and US economic data. 

Euro
Source: Bloomberg

The Fedspeak will continue today with Vice Chair Stanley Fischer, Mr Mester and Mr Williams all set to hit the wires. Apart from the greenback, I feel the euro could bring some fireworks this week, with ECB President Mario Draghi testifying on monetary policy in front of the European Parliament’s Economic and Monetary Affairs Committee.

Additionally we have a raft of manufacturing and services PMIs this week of which the market will be looking for further improvement. Recent stimulus measures and a weaker single currency are expected to have helped support the economy.

There seems to have been some progress on the Greece front with positive commentary from Mr Tsipras and Ms Merkel sounding a constructive tone. In fact, there is speculation that Greece is going to submit some fresh proposals as early as today.

EUR/USD has been in a downtrend channel since December and remains intact with the pair testing the top-end of that channel. This kicks in at around 1.0900 and unless we manage to see a daily close above this level, then this is likely to remain intact. Sellers will continue to look to take advantage of strength. 

EUR/USD chart

EUR/USD
Source: IG Charts

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