Last week, market bears took control of the USD, we saw USD weakness across board despite strong Economic data from the US. The data was unable to convince traders as USD bears were in total control. EURUSD and GBPUSD bulls were at advantage as they pushed prices to 1.13 and 1.55 respectively.
Greece uncertainty remains as there are a lot of rumours and speculations regarding if there will be a deal of no deal. Traders are cautious of going long on Eurusd as Greece might decide not to reach a deal and see what happens to their economy and creditors reaction. Also traders who wants to go short are also having doubts should in case they get a deal. It will be recalled that last week, Greece was unable to reach any deal with IMF. IMF wants Greece government to cut down Pension and Increase VAT.
Federal Open Market Committee meeting (FOMC) holds later this week. The meeting is scheduled for Wednesday. This is an anticipated meeting by traders. This is expected to give some sense of directions to USD and most especially talks about potential rate hike. Many analysts are speculating potential rate hike later this year due to strong economic data coming out from the US economy, especially the jobs data.
Aussie might be at disadvantage if the FOMC meeting ends with some optimistic tone for USD. We might probably see some further downside on AUDUSD especially down to 0.7600. USDJPY might probably climb back up to retest the 125 level.