Some progress in Greek talks
The US dollar is supported by strong housing market data released in America on Monday. The market players focus on the releases of new home sales, durable goods orders and manufacturing PMI due later today.
EUR/USD slid from 1.1337 to 1.1240. Traders still await decisions on Greece. After intense negotiations on Monday the euro zone’s leaders agreed that Tsipras’s government has finally presented reasonable proposals. Both sides will step up negotiations aiming to achieve a breakthrough on Wednesday which could be signed at the end of the week. Never the less, the market players still remain cautious. Both German Chancellor Angela Merkel and the IMF’s managing director Christine Lagarde said there was still a lot of work to be done.
GBP/USD dipped to 1.5764 before recovering to 1.5800. USD/JPY rose to 123.78. Commodity currencies got little help from Chinese manufacturing figures which showed that activity once again contracted. AUD/USD is little changed at 0.7725. NZD/USD fell to new 5-year low at 0.6836.