Daily Market Analysis by FxGrow

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Daily Market Analysis – 06th July, 2015
By FxGrow Research & Analysis Team

Global Markets sink after Greek voters rejected the terms of an International bailout

The final result of the Greek referendum, was 61.3% "No", against 38.7% who voted "Yes".

Global markets have sunk after voters in Greece rejected austerity plans demanded by International creditors, as the country's future in the Eurozone is in danger.

The Nikkei 225 index dropped 2.1% to close at 20,112.12 on Monday. In South Korea, the Kospi index fell 2.4% to 2,054. And in Hong Kong, the Hang Seng index was down 3.3% to 25,205.56.

“As of tomorrow, Greece will go back to the negotiating table and our primary priority is to reinstate the financial stability of the country" - Greek Prime Minister Alexis Tsipras.

"Today we celebrate the victory of democracy. We proved even in the most difficult circumstances that democracy won't be blackmailed" - Greek Prime Minister Alexis Tsipras.

“I’m fully aware that the mandate that I was given (by voters) is not for a rupture with Europe, but a mandate boosting our negotiating strength for reaching a sustainable deal" - Greek Prime Minister Alexis Tsipras.

"For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities" - Jeroen Dijsselbloem, head of the Eurozone finance ministers.

"I believe that with the hard efforts of all sides, Greece's economic situation will turn around. The economic crisis will be appropriately handled. Whether or not it can be appropriately handled will not only have an important impact on Greece and its people, but will have an important impact on ... the world too" - Deputy Chinese Foreign Minister.

If there is no agreement on a deal, the European Central Bank will shut down Emergency Liquidity Assistance no later than 20 July. Banks will then not only be illiquid but would then turn bankrupt, and the lack of financing would trigger a collapse of the Greek economy.

“Euro area member states intend to make full use of all the instruments available to preserve the integrity and stability of the euro area (which would) complement any actions the European Central Bank may take in full independence and in line with its mandate” - ECB.

US stocks are poised to open sharply lower on Monday after Greeks rejected the terms of the bailout proposed by its International creditors.

Crude Oil is trading lower at $54.95 8.86 after Greece rejected debt bailout terms.

Gold is trading lower in the Europe at 1164.88, while Silver is flat at 15.62

06th July 2015 – 08:32hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 07th July, 2015
By FxGrow Research & Analysis Team

Greek debt crisis: Eurozone struggles to find solution

Eurozone leaders are meeting for an emergency summit in Brussels today to find a solution to the Greek debt crisis after Greece’s landslide rejection of bailout proposals. They are awaiting a new proposal from Greece after its Finance Minister Yanis Varoufakis announced his resignation.

“The prospects of a happy resolution of this crisis are rapidly diminishing. If there is no signal from these meetings that Greece and the Eurozone are ready to get around the table again, we can expect the financial situation in Greece to deteriorate rapidly" - George Osborne, British chancellor.

“Greece is a member of the euro. It is up to Greece and its government to act so that this can remain the case. It depends now on what proposals the Greek government puts on the table" - spokesman of Angela Merkel, the German chancellor.

Global leaders have expressed concerns about the ongoing Greek debt crisis and are looking for an amicable solution.

"It is now up to the government of Alexis Tsipras to make serious, credible proposals so that this willingness to stay in the Eurozone can translate into a lasting programme. Time is running out and there is urgency for Greece and the Eurozone" - French President Francois Hollande.

"Washington looked forward to Athens and other parties resuming conversations toward resolving the Greek situation. Such an outcome will allow Greece to make difficult but necessary fiscal and structural reforms, return to growth, and achieve debt sustainability within the Euro zone" - Jack Lew, US Treasury Secretary.

"I understand why the Greek people are venting their frustration. Fiscal consolidation is not making progress. They are in deflation. The world expects Greece and the EU to cooperate on a final bailout plan" - Akira Amari, Japan's Economics minister.

Greek Banks will run out of cash by next week as large parts of the Greek economy are hit by the imposed capital controls and closure of Banks.

Greek government is also running out of cash to pay public service wages and pensions to its citizens. The country is just days away from deciding whether to leave the Eurozone, if there is no financial support from the European Central Bank.

In UK Manufacturing production dropped 0.6 percent for the month of May, while Industrial production rose by 0.4 percent.

The Reserve Bank of Australia kept its Official Cash Rate unchanged at 2.00%.
"In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending." - Reserve Bank of Australia.
US Non-Manufacturing PMI came in at 56 for the month of June according to the Institute for Supply Management.

Canada's Purchasing activity rose for the month of June as Ivey PMI came in at 55.9.
"On the other hand, domestic demand is strengthening in regions that are less exposed to the energy sector" - Bank of Canada.

Crude oil plunged to $53.13 on concerns of Greek exit and persistent oversupply in the market.

Gold is trading lower in the Europe at 1166.39, while Silver is weak at 15.64

07th July 2015 – 09:43hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 08th July, 2015
By FxGrow Research & Analysis Team

Chinese stock market crash continues

China’s stock market crashed as the government announced more measures to try to boost the sagging market after a spectacular bull-run reversed course in June.

The Shanghai Composite Index has lost about €2.9 trillion in value in the crash, which is nearly 12 times Greece’s entire foreign debt, which is estimated at €242.8 billion, and more than 12 times its gross domestic product (GDP) which is reckoned at about €238 billion last year.

"At the moment there is a mood of panic in the market and a large increase in irrational dumping of shares, causing a strain of liquidity in the stock market" - China Securities Regulatory Commission.

"Also, the ripple effect from the market correction has yet to show up. We expect slower growth, poorer corporate earnings, and a higher risk of a financial crisis" - Analyst of Bank of America Merrill Lynch.

More than 1,300 companies representing about 40 percent of the value of companies in China have halted trading in an effort to stop the slide.

More than 500 China-listed firms announced trading halts on the Shanghai and Shenzhen exchanges on Wednesday, taking total suspensions to about 1,300 - 45 percent of the market or roughly $2.4 trillion worth of stock - as companies scuttled to sit out the carnage – Reuters.

“Fears about the risks to financial stability and the wider economy have contributed to negative sentiment toward commodities. The impact has been felt most in industrial metals, such as copper, where China is by far the most important consumer" - Analyst from Capital Economics.

In Eurozone, after the emergency summit in Brussels, European leaders have given Greece time until Thursday to present new proposals to secure a deal with creditors, and have called a full EU summit for Sunday.

"If this does not happen, it will mean an end of the negotiations with all the possible consequences, including the worst-case scenario, where all of us will lose. Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its banking system. Tonight I have to say loud and clear that the final deadline ends this week" - European Council President Donald Tusk.

"The Commission does not want a Grexit. Grexit would be a terrible failure and we are fighting to avoid it." - Pierre Moscovici.

Canada's Trade deficit increased to C$3.3 billion deficit, while the volume of exports plunged 2.5% in May.

"On the other hand, domestic demand is strengthening in regions that are less exposed to the energy sector" - Bank of Canada.

Crude oil plunged to $52.37 on China stock market turmoil ahead of weekly supply data from US.

Gold is trading lower in the Europe at 1153.89, while Silver is weak at 15.01

08th July 2015 – 09:38hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 09th July, 2015
By FxGrow Research & Analysis Team

FOMC Minutes: Fed Cautious over weak Consumer spending, Risks in Greece and China

“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced.” – FOMC.

"Many participants emphasized that, in order to determine that the criteria for beginning policy normalization had been met, they would need additional information indicating that economic growth was strengthening, that labor market conditions were continuing to improve, and that inflation was moving back toward the Committee's objective." – FOMC.

"Most participants judged that the conditions for policy firming had not yet been achieved; a number of them cautioned against a premature decision" – FOMC.

The FOMC minutes show that officials are cautious about the economic outlook. Their concerns include weak consumer spending, and drags on investment and exports resulting from lower energy prices and a stronger USD.

Concern over Greece and China, Fed officials were open to delaying their first interest rate increase since 2006 amid uncertainty over Greece’s future in the euro zone.

"While a worst-case scenario of a Greek exit from the euro leading to sizable financial and economic impacts on the global economy cannot be ruled out, it remains an unlikely tail risk" - San Francisco Fed President Williams.

In China, Stock markets have stabilized with the Shanghai Composite up 6.35% and the Shenzhen Composite up 3.76%. With support from the Chinese government to rescue stock markets, the People's Bank of China has cut interest rates to a record low; brokerages have committed to buy billions worth of stocks.

The Greek government sent a formal request for a new bailout to the European Stability Mechanism, asking for a three-year loan facility.

Greece has said it will provide details of credible and concrete reforms to its creditors today to try to secure a third bailout from the European Union and the International Monetary Fund.

Canada’s Building permits declined to C$6.7 billion for the month of May, showing signs that the Canadian economy struggled to regain momentum after shrinking in the first quarter of the 2015.

Crude oil is trading lower at $52.44 after a surprise build in US stockpiles.

Gold is trading higher in the Europe at 1164.45, while Silver is up at 15.39

09th July 2015 – 09:04hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 10th July, 2015
By FxGrow Research & Analysis Team

Euro Higher as Greece submits new Bailout Proposal

Greece has submitted a new detailed proposal to its European creditors asking for a three year bailout loan. The chairman of Euro group finance ministers, Jeroen Dijsselbloem, received the documents which will be assessed by the officials from the European Commission, European Central Bank and International Monetary Fund.

"We got a mandate to bring a better deal than the ultimatum that the Euro group gave us, but certainly not given a mandate to take Greece out of the Eurozone. We are confronted with crucial decisions, we are all in this together" - Greek Prime Minister Alexis Tsipras.

Greek PM Alexis Tsipras has taken care to draft a new proposal along with his cabinet which proposes tax rises, pension reforms meeting the demands of the creditors. The new proposal is due to be approved by the Greek Parliament today and will be presented before the Euro group of Finance minister's summit on Sunday.

EURUSD is lifted by the news that Greece has submitted a new proposal for bailout from a low of 1.0991 to trade at 1.1118 in the European trading session.

“The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors. Only then will we have a win-win situation” - European Council President Donald Tusk.

European Union leaders will be meeting for an emergency summit in Brussels on Sunday where they will decide on the future of the Greece in the Euro. If there is no deal by Sunday then the Greek economy will collapse and possibly leave the Euro.

“Greece seeks to reach an agreement with the institutions immediately, but we want an agreement that will respect the country and the people’s dignity, and that will open windows for a way out of the crisis. We do not want to add a third Memorandum of harsh austerity, suffering and deprivation to the two previous ones without offering a prospect to the country" - Greek Energy Minister.

The future of Greece in the Eurozone will be decided this weekend when the European leaders will discuss a third bailout program in the light of new proposal submitted to them.

US Initial Jobless Claims jumped to 297K, as the number of people applying for unemployment benefits rose more than expected last week.

Bank of England has kept its benchmark interest rate unchanged at 0.5% on backdrop of strong growth. IMF expects British economy to grow 2.7% this year.

In Australia Unemployment rate rose to 6.0% for the month of June according to the Australian Bureau of Statistics.

China’s Consumer Inflation rose to 1.4% for the month of June according to the National Bureau of Statistics.

Crude oil has rebounded to $53.26 as China stock markets have recovered from collapse.

Gold is trading higher in the Europe at 1163.16, while Silver is up at 15.47

10th July 2015 – 09:38hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 13th July, 2015
By FxGrow Research & Analysis Team

Eurozone Leaders have reached a Greek Bailout Agreement

Eurozone leaders have agreed upon a Greek bailout deal and keep Greece in the Euro. European Summit Chair Donald Tusk tweeted in a message “Euro Summit has unanimously reached agreement”. The new bailout proposed for Greece will include serious economic reforms and financial support.

"After 17 hours of negotiations, we have finally reached it. One can say that we have ‘agreement’. Leaders have agreed in principle that they are ready to start negotiations on an ESM programme, which in other words means continued support for Greece" - EU council President Donald Tusk.

"There are strict conditions to be met. The approval of several national parliaments, including the Greek parliament, is now needed for negotiations on an ESM programme to formally begin" - EU council President Donald Tusk.

Following the news EURUSD shot up and touched a high of 1.1195 in the European trading session. Euro was unable to hold on and drifted lower as the traders sentiments shifted towards US rate hike later this year.

The third bailout program for Greece is estimated at 86 billion euros and will require Greek parliament to push legislation including tax and pension reforms as demanded by its creditors.

“Greece had secured debt restructuring and a 35 billion euro growth package. We fought a tough battle. We face difficult decisions” - Greek Prime Minister Alexis Tsipras.

“I think the euro is being pulled down by expectations that higher US rates will support the dollar, and the cost of Greece deal, including a worsening Greek economic crisis and increasing fissures in Europe’s leadership” - strategist at Union Bancaire Privée.

“The country which we help has shown a willingness and readiness to carry out reforms. The advantages far outweigh the disadvantages" - German Chancellor Angela Merkel.

The Greek Parliament needs to approve the terms of the agreement without any delay. A fund will be created to monetize some Greek State assets owned by the Greek government to help pay down the country’s debt.

Greece will also need to seek the assistance of the International Monetary Fund to monitor the country’s adherence to its bailout commitments.

Euro group head Jeroen Dijsselbloem said a fund will be set up to tackle the debt and recapitalization of the country’s banks. The total size of the fund would be around 50 billion euros.

“Once approximately €25 billion needed to recapitalize the banks have been used, 50% of the remaining funds will be used to bring down debt even more, and 50% can be invested in Greece by the Greek government. This is one of the key elements on both debt sustainability and to let growth return to Greece.” - Euro group head Jeroen Dijsselbloem.

Crude oil is trading lower at $51.66 after IEA reported that world oil demand will be slower in the next year.

Gold is trading lower in the Europe at 1156.24, while Silver is weak at 15.47

13th July 2015 – 10:05hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 14th July, 2015
By FxGrow Research & Analysis Team

US Dollar Gains on expectations of Fed Rate Hike this year

US Dollar rose against its major counterparts after global tensions eased on the news that Eurozone leaders have reached an agreement for a new bailout package for Greece.

Following the Greek deal investor sentiment has improved as they are now looking at the growth divergences between the US and Europe. Safe heaven currencies such as the Japanese Yen and the Swiss Franc are also weak reflecting the investor sentiment.

Globally investors have shifted their focus to the US Federal Reserve as it is expected to hike interest rates later this year.

Fed Chairwoman Janet Yellen will provide more cues of the timing of the rate hike at her semiannual testimony to Congress on Wednesday and Thursday.

Fed Chairwoman Janet Yellen said in her statement last week "It will be appropriate at some point later this year to take the first step to raise the federal funds rate and thus begin normalizing monetary policy."

The US Dollar remains steady against the Japanese Yen as it touched a high of 123.74 today after the risks of a Greek exit from the Eurozone were avoided.

EURUSD touched a low of 1.0968 as trader’s reverted back to dollar buying after the easing of concerns over Greece and China.

Greek's 10 year sovereign yields fell to 12.01 per cent, German 10 year yields to 0.85 percent, while the 10-year US Treasury yield rose to 2.44 per cent.

Wall Street rallied on Greek deal with the DJIA and the S&P 500 indices rising +1.22% and +1.11% respectively. The Stoxx600 jumped a further +2%.

Chinese stocks rose with the Shanghai Composite rising 2.4 per cent and the Shenzhen Composite ending 4.2 per cent higher.

In UK CPI Inflation dropped to zero for the month of June, following the significant drop in oil prices at the beginning of this year.

In Germany investor confidence dropped as the ZEW index dropped to 29.7 for the month of June. ZEW economic sentiment for the Eurozone came in at 42.7 amid uncertain conditions in Europe.

China's Exports increased by 2.8% for the month of June as compared from the previous year. China's customs department said that the country's trade performance will improve in the second half of 2015.

Japan industrial production declined 3.9% in May as the world's third biggest economy faces pressure to sustain a healthy growth in the second half of 2015.

Crude oil is trading lower at $51.18 after Iran reached a nuclear deal which is expected to increase the supply of Iranian crude on world markets.

Gold is trading lower in the Europe at 1153.98, while Silver is weak at 15.35

14th July 2015 – 10:34hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 15th July, 2015
By FxGrow Research & Analysis Team

US retail sales drop in June, weighing on Fed's interest rate decision

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for June, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $442.0 billion, a decrease of 0.3 percent from the previous month.

“Unexpectedly weak retail sales data adds to signs that the US economy is slowing again after pulling out of the soft patch earlier in the year” - MarkIt economist Chris Williamson.

“The weakness of the sales data in June, alongside disappointing PMI survey data and a smaller than hoped-for rise in non-farm payrolls, all points to the economy having moved down a gear after this rebound, settling into a far weaker underlying pace of growth than was seen throughout much of last year” - MarkIt economist Chris Williamson.

"The numbers add to a growing body of evidence which suggests that the US economy is slowing again as we head into the second half of the year. Such a slowing will most likely persuade policymakers to hold off on raising rates until next year unless there is a swift revival of demand in coming months" - MarkIt economist Chris Williamson.

Chinese Stock markets fell further, with the Shanghai Composite down by -3.74% while the Shenzhen Composite lost -4.21%.

China's Economy Grew 7% in the second quarter of the 2015, being supported by the government's stimulus measures.

Bank of Japan kept its monetary policy unchanged, and downgraded its economic growth outlook for the year 2015. The Bank reduced its growth forecast to 1.7% from 2% for 2015.

In UK Interest rate hike is getting closer due to consistent UK economy's growth above the trend.

“The point at which interest rates may begin to rise is moving closer with the performance of the economy, consistent growth above trend, a firming in domestic costs, counterbalanced somewhat by disinflation imported from abroad" - Mark Carney, BoE Governor.

Today Greek parliament is to vote on the bailout plan and pass the proposed reforms needed to secure the loans and avoid the default from the Eurozone. If the vote passes in the Greek parliament today it will require the support of the opposition parties.

Greek needs to pass the bailout plan to avoid a total Banking collapse and get assistance from the European Central Bank thru Emergency Liquidity Assistance.

Crude oil prices have jumped to $52.62 after Iran nuclear deal.

Gold is trading flat in the Europe at 1154.88, while Silver is weak at 15.29

15th July 2015 – 10:28hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 16th July, 2015
By FxGrow Research & Analysis Team

Greek Parliament approves Bailout package

Greek parliament has approved the €86 billion bailout package in a tense voting session with 229 members voting Yes, 64 voting No and 6 members refrained from voting.

The new bailout package demands tough economic reforms imposing sweeping sales tax hikes, reforms in pensions and a series of austerity measures as imposed by the European Union.

"I had specific choices before me: one was to accept a deal I disagree with on many points, another was a disorderly default. We will not back down from our pledge to fight to the end for the right of the working people. There is no other option but for all of us to share the weight of this responsibility" - Greek PM Alexis Tsipras.

The new third bailout package for Greece needs to be passed by the domestic parliaments of the other 19 members of the Eurozone before Greece can receive the Funds. Germany is expected to vote on the new bailout package on Friday.

Eurozone finance ministers will hold a conference call on Thursday to discuss the next steps in finalizing Greece’s third bailout of 86 billion euros and prevent the Greek Bank's from collapsing.

“We support the government but we disagree with this new memorandum, with these measures. We are the heart and soul of Syriza" - Greek Energy minister.

The European Central Bank is expected to hold a meeting of its governing council to extend financial support to Greek banks, which have remained closed for the last ten days.

"In the absence of a better solution, the European Commission has proposed to the Council to grant short-term emergency assistance to Greece from the EFSM" - European Commission VP, Valdis Dombrovskis.

Yesterday, Fed Chairwoman Janet Yellen said before the House of Representatives that a rate hike in 2015 is still on the table if economy evolves as expected.

"If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target" -Janet Yellen, Fed Chair.

Following the comments US Dollar was higher against its major counterparts with the EURUSD trading at 1.0903 and AUDUSD at 0.7391 in the European trading session.

In US Wholesale prices rose to 0.4% for the month of June according to the Labor department. Meanwhile, core prices increased by 0.3% for the same period. A pickup in the prices would reinforce Fed's view of raising the interest rates this year.

In UK unemployment rate climbed to 5.6% for the month of June, the first time in more than two years. With good growth prospects the Bank of England has signaled that it is moving closer to hike interest rate this year.

The Bank of Canada has cut its interest rate by 25 basis points to 0.50%, and downgraded GDP forecast to 1% in 2015.

"Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target" -Bank of Canada.

Crude oil prices have moved higher to $51.77 after Greek bailout vote.

Gold is trading lower in the Europe at 1144.79, while Silver is weak at 14.98

16th July 2015 – 10:42hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

 

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Daily Market Analysis – 17th July, 2015
By FxGrow Research & Analysis Team

ECB Raises ELA to Greek Banks by 900 Million Euros

European Central Bank President Mario Draghi raised Emergency Liquidity Assistance to Greek Banks providing an additional 900 million euros that would allow Greek banks to reopen.

The ECB has hiked its ELA to Greek banks after the Greek parliament voted in favor of the austerity reforms and the third bailout program for Greece.

"If things continue to proceed in a positive way as they have done in the last two days we will have a phase during the Bank of Greece and the ECB, which are working very actively in monitoring the situation, will look at exactly the needs of the Greek economy" - Mario Draghi, ECB President.

The European Central Bank has kept its interest rates unchanged in an effort to counter deflation as per analyst expectations.

"Recent developments in financial markets, which partly reflect greater uncertainty, have not changed the Governing Council's assessment of a broadening of the euro area's economic recovery and a gradual increase in inflation rates over the coming years" - Mario Draghi, ECB President.

"As explained on previous occasions, our monthly asset purchases of EUR60 billion are intended to run until the end of September 2016 and in any case until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below but close to 2 percent over the medium term" - Mario Draghi, ECB President.

"Several positive things have happened that could justify us to increase the ELA we approved today. Incidentally I didn't say how much. We substantially accommodated the request put forward by the bank of Greece recalibrated over one week. The increase would be €900m over one week" - Mario Draghi, ECB President.

Greek banks will reopen on Monday after being closed for nearly three weeks. Greek Deputy Finance Minister Madras said that withdrawal restrictions will remain in place.

Bank of England Governor Mark Carney said that the UK interest rates could rise around the end of this year.

"In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year" - Mark Carney, BoE Governor.

In US Jobless Claims declined to 281K last week indicating improving labour market conditions.

"If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target" -Janet Yellen, Fed Chair.

In New Zealand Inflation Rose to 0.4% in the second quarter of the 2015, but remained well below the target range of 1% to 3% putting pressure on the Reserve Bank of New Zealand to cut interest rates.

Crude oil prices have moved lower to $50.83 as investors await weekly US Oil rig count.

Gold is trading lower in the Europe at 1143.85, while Silver is weak at 14.98

17th July 2015 – 09:26hrs GMT

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.