Technical Bias: Neutral
- EURUSD enjoys modest rally ahead of FOMC meeting minutes.
- Greece raises €1.1375 billion ahead of an upcoming loan repayment to the IMF.
- Greek PM Tsipras meets with Russian President Putin.
The EURUSD rebounded modestly on Wednesday, as Greece began raising cash to cover its upcoming loan payment to the International Monetary Fund, while Greek Prime Minister Alexis Tsipras touched down in Moscow to meet Russian President Vladimir Putin.
The EURUSD enjoyed limited gains on Wednesday, as the euro faltered against other crosses. The EURUSD touched an intraday high of 1.0887 before consolidating around 1.0850, a gain of 0.35 percent. The technical bias is neutral for the EURUSD, with initial support likely found at 1.0732. On the upside, the pair is likely to meet resistance at the daily high of 1.0887, followed by 1.0913.
Greece sold 6-month Treasury bills at 2.97 percent on Wednesday, raising €1.1375 billion ahead of an upcoming loan repayment to the IMF. Greece is on the hook for €458 million on April 9. A failure to repay the next loan tranche could set Greece on a collision course with default.
Meanwhile, Greek Prime Minister Alexis Tsipras touched down in Moscow on Tuesday to meet with Russian President Vladimir Putin. Tsipras insists that Athens is not seeking financial aid from the Russian Federation, although both sides will talk about the issue of debt in the Eurozone. Tsipras has reiterated his opposition to western sanctions against the Kremlin over its perceived participation in destabilizing Ukraine.
In economic data, Eurozone retail sales declined unexpectedly in March, ending four straight months of gains. Eurozone retail sales dipped 0.2 percent, following a 0.9 percent increase in February, Eurostat reported on Wednesday. Compared to March 2014, retail sales were up 3 percent, official data showed.
Separately, German factory orders declined for a second straight month in February, a sign Europe’s largest economy still faces barriers in its recovery efforts. Factory orders fell 0.9 percent in February following a 2.6 percent drop the previous month. Economists forecast an increase of 1.5 percent.
All was quiet on the US release front, as the markets shifted their attention to the Federal Open Market Committee (FOMC) policy meetings. The FOMC minutes will be released at 2:00 pm EST.