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Forex pairs in this Article » USD/JPY, EUR/USD
The US Dollar and Japanese Yen are likely to extend overnight gains on jitters before a meeting of Eurozone finance ministers to tackle Greek bailout funding.

Talking Points

  • US Dollar, Yen Rise on Jitters Before Eurozone FinMin Meeting
  • S&P 500 Futures Hint Continued Risk Aversion Likely Ahead
The Japanese Yen and US Dollar outperformed in overnight trade as forex traders sought the go-to safe haven currencies despite a rally across Asian stock exchanges. The performance of regional equities appeared to reflect follow-through following the sharp recovery on Wall Street while currency markets cast an uneasy eye toward a meeting of Eurozone finance ministers on tap later today.

Policymakers are set to tackle the thorny issue of Greek bailout funding. Athens has struggled to reach agreement with the so-called "troika" (EU, ECB, IMF) about the release of the latest tranche of bailout funding. Continued failure to secure a deal that restarts the near-term flow of rescue cash and deals with paying for the cost of extending the deadline for Greece to meet its budgetary objectives by two years is likely to fan the flames of sovereign risk anew.

While Greece is a very small part of the Euro area, it has been looked upon to set the precedent for how the single currency bloc deals with the debt crisis. Investors will swiftly translate a lack of progress that reboots fears of a disorderly endgame to the Greek ordeal into what a similar scenario would mean in countries like Spain, weighing on sentiment across financial markets. S&P 500 futures are pointing lower, reinforcing the likelihood of a risk-off mood in the coming hours and hinting the Dollar and Yen may remain well-supported.

Asia Session: What Happened

GMT
CCY
EVENT
ACT
EXP
PREV
23:00
AUD
Conference Board Leading Index (SEP)
-0.3%
-
-0.8%
0:30
AUD
Reserve Bank Board Minutes (NOV)
-
-
-
2:00
CNY
China Actual FDI (YoY) (OCT)
-0.2%
1.0%
-6.8%
3:14
JPY
Bank of Japan Rate Decision (NOV 20)
0.1%
-
0.1%
4:30
JPY
All Industry Activity Index (MoM) (SEP)
-0.3%
-0.5%
0.0% (R-)
5:30
JPY
Nationwide Dept. Sales (YoY) (OCT)
-2.4%
-
-0.2%
5:30
JPY
Tokyo Dept. Store Sales (YoY) (OCT)
-1.5%
-
0.7%
7:00
JPY
Convenience Store Sales (YoY) (OCT)
-2.1%
-
-1.6%
Euro Session: What to Expect

GMT
CCY
EVENT
EXP/ACT
PREV
IMPACT
7:00
CHF
Trade Balance (Swiss franc) (OCT)
2.82B (A)
1.93B
Medium
7:00
CHF
Exports (MoM) (OCT)
-16.5% (A)
2.9%
Low
7:00
CHF
Imports (MoM) (OCT)
-8.2% (A)
4.6%
Low
7:00
EUR
German Producer Prices (MoM) (OCT)
0.0%(A)
0.3%
Medium
7:00
EUR
German Producer Prices (YoY) (OCT)
1.5%(A)
1.7%
Medium
16:00
EUR
Eurozone Finance Ministers Meet on Greece
-
-
High
Critical Levels

CCY
SUPPORT
RESISTANCE
EURUSD
1.2698
1.2846
GBPUSD
1.5862
1.5948
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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