AtoZForex.com Lagos – After the back and forth meetings and negotiations, Greece announced late yesterday that it will miss today’s payment to the IMF, and bundle up its June commitments into a single payment, a move earlier speculated. The option of bundling all of its four IMF payments together and postpone the entire repayment to the 30th of June has always been open, even though the country showed little will to activate this option. The timing of the announcement was also sudden as not too long ago from the time of the announcement, IMF’s Christine Lagarde spoke confidently that Greece will make their debt repayment today. This sent the Euro down, ending the day lower against the dollar erasing all previous gains as Greece IMF payment will be missed today.
Again, the US unemployment claims impresses, coming at 276k. According to the Labor Department, fewer workers are filling for unemployment benefits than at any period in more than 14 years. This adds to the positivity of a stronger aggregate employment condition in the economy. It is now left for the Fed to make a decision based on the information available.
Canada’s Ivey PMI is a survey of about 175 purchasing managers, selected geographically and by sector of activity, asking respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The index showed that the pace of purchasing activity in Canada accelerated at a far faster pace than expected in May, spurred by an increase in employment and inventory levels. The Canadian dollar added about 30pips against the USD immediately after the report.
Today we have the OPEC meetings. In anticipation for the verdict crude oil has declined further yesterday. Brent crude dipped by 2 percent putting it around $62.48 per barrel. it is widely expected that the OPEC will remain the 30mln barrel a day output, in order to maintain the markets share despite calls from some OPEC members late yesterday about a new “fair” price for crude oil.
For the rest of the day, we have:
12:30 P.M GMT- The all important Non-Farm Employment Change is forecast to come at 222k Unemployment Rate forecast to remain at 5.4%.
Canada’s Employment Change forecast for 10.2k and Unemployment Rate is expected to remain at 6.8%.
Later in the day, FOMC Member Dudley is scheduled to speak about the US economic outlook and monetary policy at the Economic Club of Minnesota, in Minneapolis.