Daily FX Update, 9 July 2015

v  June FOMC meeting minutes shows that members are not ready to raise interest rates      v  Greece submits a request to ESM, requesting a 3-year bailout program v  Japan posts a current account surplus for 11th consecutive month in May v  Japan economy watchers survey declines in June v  South Korea's M2 money supply expands at the fastest pace in almost five years     OVERNIGHT MARKET UPDATE: ·         US – June Federal Reserve meeting minutes showed that most members are not ready to raise interest rates. Members are waiting for more data to confirm "economic growth was sufficiently strong and labour market conditions had firmed enough to return inflation to the Committee's longer-run objective over the medium term". In the minutes, members were also particularly concerned "that a failure of Greece and its official creditors to resolve their differences could result in disruptions in financial markets in the euro area, with possible spillover effects on the United States."   ·         Greece – A request is submitted to the European Stability Mechanism (ESM), requesting a 3-year bailout program with details to be submitted today. Greece is reportedly prepared to adopt pension reforms and tax measures as early as next week. ·         Currency – The dollar fell against JPY and EUR after the June FOMC meeting minutes showed the central bank remained cautious about the US economy and raising interest rates.          ·         Rate – Euro area peripheral bond spreads to bunds narrowed on renewed hopes of a Greece resolution. US 10-year yields fell 7 bps to close at 2.19% in react to the June FOMC meeting minutes.    ·         Equity – Euro area stocks were also firmer but US stock markets were weaker, with the S&P 500 back 1.7% and the Dow Jones falling 1.5%. The NYSE was closed for some time due to a technical glitch.            ·         Energy – WTI was weaker as negative sentiment stemming from higher supply and concerns around Greece and China weighed. Brent found some support as concerns eased around the Iran nuclear deal and the lifting of sanctions.       Precious Metal – Gold rallied towards the close to end higher after the dollar weakened against some major currencies and global equity markets declined. INDICATIVE MAJOR CURRENCIES Last Close  8.05 am Snapshot        Bid                   Offer Expected Ranges for Today         Low                       High USD/MYR 3.8080 3.7820 3.8160 3.7800 3.8250 JPY/MYR (100) 3.1536 3.1270 3.1600 3.1200 3.1800 SGD/MYR 2.8182 2.7950 2.8290 2.7900 2.8500 EUR/MYR 4.2075 4.1900 4.2240 4.1700 4.2600 AUD/MYR 2.8309 2.8020 2.8350 2.7900 2.8600 GBP/MYR 5.8396 5.8200 5.8560 5.7900 5.9100 USD/JPY 120.75 120.65 121.06 120.25 121.25 EUR/USD 1.1049 1.0920 1.1230 1.1020 1.1130 AUD/USD 0.7434 0.7260 0.7570 0.7370 0.7470