Forex: Monday’s review

Yesterday the euro dropped to its lowest level in almost four months against the dollar as a leadership vacuum in Greece prompted European officials to weigh prospects for the currency union’s first Alexis Tsipras, who heads Greece’s anti-bailout Syriza party, wouldn’t attend a meeting called by President Karolos Papoulias today, the Athens-based party said in a statement. Syriza rejected a unity government last week following inconclusive elections on May 6. Greece may face another vote unless leaders can agree on a new coalition.

Australia’s currency dropped below parity with the greenback for the first time this year as global stocks and commodities fell.

Sterling rallied against all of its 16 most-traded peers as investors sought an alternative to the shared currency. The pound gained as much as 0.9 percent to 79.63 pence per euro, the most since November 2008, before trading at 79.75 pence, up 0.8 percent. It rose 0.3 percent to $1.6109.

EUR/USD: yesterday the pair fell to a floor of a figure.

GBP/USD: yesterday the pair gain in the moment above $1.6100.

USD/JPY: yesterday in first half of day the pair rose above Y80.00, however fell below a Friday’s low later.

This morning in Europe sees the release of the flash Q1 GDP data, starting with France at 0530GMT, which is expected to come in flat on the quarter. German flash GDP data is due at 0600GMT and is expected to rise just 0.1% q/q. Also in Europe today, from 0630GMT, the Ecofin EU finance ministers are due to discuss issues relating to the European Investment Bank, bank capital rules, and savings tax agreements with Switzerland, at a meeting in Brussels. France employment data is due at 0645GMT, while Italy releases Q1 flash

GDP at 0800GMT. UK trade data at 0830GMT is expected to see a reduction in the trade balance to -8.4 billion with the non-EU balance at -4.7 billion and total trade at -2.9 billion. The EMU GDP data comes at 0900GMT along with the Germany ZEW  data and is expected to show a reading of -0.2% q/q.  At 1745GMT, German Chancellor Angela Merkel and French President Francois Hollande give a press conference after a meeting in Berlin. US data starts at 1145GMT with the ICSC weekly mail sales data, while at 1230GMT, retail sales, CPI and the NY Fed Empire State Survey are all due. US data continues at 1255GMT with the weekly Redbook chain store sales data and then at 1300GMT by the Treasury International Capital System totals (TICS) data. At 1330GMT, Federal Reserve Governor Elizabeth Duke speaks to the National Association of Realtors in Washington. Further US data at 1400GMT sees Business Inventories as well as the Housing Market Index from the NAHB.