Euro Focused on Merkel, Tsipras Meeting as US Dollar Eyes Fed-Speak

Talking Points:

Euro May Rise if Signs of Breakthrough Emerge at Merkel / Tsipras Meeting
US Dollar Looks to “Fed-Speak” for Direction, Fischer and Williams on Tap
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All eyes are on Berlin in European trading hours as German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras meet to discuss securing a deal on the Mediterranean country’s financing deal. Increasingly aggressive saber-rattling from both countries has elevated tensions in recent weeks. Posturing aside however, both sides still appear vested in securing an accord. With that in mind, the Euro may rise if signs of a breakthrough emerge at today’s sit-down.

Later in the day, Federal Reserve monetary policy speculation will re-enter the spotlight as Vice Chair Stanley Fischer and San Francisco branch President John Williams kick off a busy week of scheduled commentary. Traders notably scaled pushed out the likely timeline for rates “liftoff” following last week’s FOMC meeting, with Fed funds futures now pointing to a hike in September. Rhetoric supporting the dovish shift may weigh on the US Dollar, while clues suggesting a mid-year hike remains in the cards stand to push the greenback upward.

The Australian and New Zealand Dollars outperformed in overnight trade, rising as much as 0.7 and 1.2 percent respectively. A swell in risk appetite appeared to be behind the move. The MSCI Asia Pacific regional benchmark stock index rose 0.8 percent. The Swiss Franc underperformed, falling as much as 0.5 percent.

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Asia Session

GMT

CCY

EVENT

ACT

EXP

21:00

NZD

Westpac Consumer Confidence (1Q)

117.4

–

114.8

6:00

JPY

Supermarket Sales (YoY) (FEB)

-0.8%

–

-1.7%

European Session

GMT

CCY

EVENT

EXP

IMPACT

8:00

CHF

SNB Sight Deposits

–

Low

8:00

CHF

Money Supply M3 (YoY) (FEB)

–

-1.7%

Low