Euro remains under pressure
EUR/USD is trading below 1.1200. On Monday the euro area’s finance ministers welcomed progress in negotiations between Greece and its creditors. However, there wasn’t any breakthrough and no decision about providing the nation with the final tranche of the bailout has been made yet. Greece has ordered to transfer 750 million euro ($840 million) for a debt payment to the International Monetary Fund which was due to arrive on Tuesday. It’s clear that Greek government is practically out of cash, and the threat of its default remains.
China cut interest rates for the third time in six months on Sunday. Although investors have generally welcomed this step, concerns about the nation’s economic growth remain. AUD/USD recovered to 0.7940 as Australian home loans rose by 1.6% vs. 1.1% expected. NZD/USD went up, but remained near 2-month low at 0.7328 on the speculation that the Reserve Bank of New Zealand will eventually have to cut interest rates.
USD/JPY is trying to hold above 120.00. GBP/USD has paused a bit after reaching $1.5613 on Monday, the highest level of 2015.