Good Morning Europe

ASIA

PBoC set the CNY mid-point at 6.3975 vs. last close. 6.3990 (Prev. mid-point 6.4010); CNY reference rate was strengthened by 0.05%, marking the first appreciation in 4-days.

In light of the PBoC strengthening the CNY, reaction has been relatively mild with minor gains seen in AUD/USD and US equity futures. However, the moves were not sustained with only CNH notably benefitting as the change was minor in comparison to the considerable devaluations seen in the past few days. 

EUROPE

IMF Greece admission chief Velculescu stated that the IMF will decide in joining additional financing for Greece after steps on debt program relief. 

Today will see the Eurogroup meet to debate the third Greek bailout with the meeting to begin at 1400 BST. 

Greek Parliament continue to debate the terms of the third Greek bailout with the results of the vote not expected for a few hours yet. . Elsewhere, newswires suggest that German parliament could vote on the issue on Tuesday.  

FX

NZD has been notably sluggish in the wake of disappointing NZ retail sales ex inflation which printed its slowest increase since Q3 2013 (0.10% vs. Exp. 0.50% Prev. 2.70%). 

COMMODITIES

WTI crude prices fell overnight breaking below YTD lows to trade at its lowest level in 6-years and is on for a 7th W/W fall, while Gold extended on losses overnight as the USD index saw mild gains. 

Goldman Sachs said China's CNY devaluation is to weigh further on commodities. 

Citi cut their 2015 WTI oil forecast to USD 48 from USD 53 and 2015 Brent oil forecast to USD 54 from USD 58. 

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