Market sentiment on Greece improved on Wednesday as the Greek government has finally applied for a third aid program. No details have been announced yet, but this is an important step towards the long-awaited solution. Market is already pricing in the positive outcome. As a result, demand for the safe US dollar declined.
Meanwhile, China’s stock crisis is gaining traction. Shanghai Composite stock index dipped to a new low of 3500 on Wednesday. Japanese yen strengthened significantly as the speculative capital is flooding from China to safe Japan.
"KURSUS FOREX BALIKPAPAN .:. Cara Mudah Belajar Bisnis Trading Gratis unutk pemula"
Late on Wednesday, don’t miss the FOMC minutes release and the Fed’s member Williams speech. US Dollar could recover on Thursday in case if there are some hints on a policy tightening coming in September. Tomorrow watch the unemployment claims in the United States.
EUR/USD
- Trying to fix above 1.1050 (trend line)
- If it does – buy with a target of 1.1100 on Greek optimism
- Bearish targets are 1.0910, 1.0820
- There are no releases in euro zone, monitor the Greek headlines
