Market sentiment was lifted as New Democracy won the election in Greece and pro-bailout parties would be able to control the parliament. The euro rebounded while Japanese yen and the US dollar plunged. The next key event would be the G-20 meeting in Mexico and the FOMC meeting, both will be held this week. In the commodity sector, crude oil prices climbed higher buy gains were pared soon. The front-month contract for WTI crude oil initially rose to a 5-day high of 85.6 before falling back to 84.5 while the equivalent Brent crude contract climbed to as high as 99.5 before slipping to 98.5. Gold experienced high volatility and low volume as investors remained suspicious to the Eurozone outlook and whether the yellow metal should be traded as safe haven or risk asset. The benchmark Comex contract plunged to as low as 1606.9 before bouncing back to 1625.

The latest general election in Greece alleviated market concerns that the debt-ridden country would abandon the fiscal tightening measures and leave the Eurozone. According to official projections, New Democracy won 29.8% of the vote and secured 129 seats in Greece's legislature, compared with the anti-bailout party Syriza' 26.8% and 71 seats. Together with the socialist Pasok, with 12.4% and 33 seats, pro-bailout parties are expected to control the majority of the parliament. The single currency and risk assets buoyed as the situation in Greece is temporarily stabilized. However, uncertainty indeed remains. Even though a stable government is formed, Greece still has to face severe contraction with the economy likely to decline -6% this year. The New Democracy leader Samaras has stated that Greece will respect its commitments but has also said that he plans to work with other EU leaders on growth policies. Prior to the election, he and his Pasok counterpart Venizelos had presented 18- and 6-point renegotiation plans respectively. The main idea of the proposals is to slow down the pace of fiscal consolidation by extending the duration of the program. They also proposed to reverse or pause the recent employment bills in order to reduce the downward pressure on domestic wages. These renegotiations will have to be approved by the EU before adoption.

The economic calendar is light today but the market will focus on the G -20 summit in Mexico. The Eurozone crisis will remain the chief agenda in the meeting. The US NAHB housing market index might have slipped -1 point to 28 in June.

Commitments of Traders:

Speculators were mixed towards the energy complex in the week ended June 12. Net length for crude oil futures slid -15 979 contracts to 130 858. Heating oil reported returned to the positive territory, recording 4 183 contracts in net length. Net length for gasoline dipped -7 072 contracts to 59 147. Net short for natural gas futures dropped -6 996 contracts to 102 398.

With the exception of silver, speculators were bullish towards precious metals. Net length for gold futures gained +3 451 contracts to 132 315 while that for silver dipped -185 contracts to 9 609 contracts. For PGMs, net length for platinum increased +1 459 contracts to 16 193 while that for palladium rose +1 607 contracts to 5 057.

Market sentiment was lifted as New Democracy won the election in Greece and pro-bailout parties would be able to control the parliament. The euro rebounded while Japanese yen and the US dollar plunged. The next key event would be the G-20 meeting in Mexico and the FOMC meeting, both will be held this week. In the commodity sector, crude oil prices climbed higher buy gains were pared soon. The front-month contract for WTI crude oil initially rose to a 5-day high of 85.6 before falling back to 84.5 while the equivalent Brent crude contract climbed to as high as 99.5 before slipping to 98.5. Gold experienced high volatility and low volume as investors remained suspicious to the Eurozone outlook and whether the yellow metal should be traded as safe haven or risk asset. The benchmark Comex contract plunged to as low as 1606.9 before bouncing back to 1625.

The latest general election in Greece alleviated market concerns that the debt-ridden country would abandon the fiscal tightening measures and leave the Eurozone. According to official projections, New Democracy won 29.8% of the vote and secured 129 seats in Greece's legislature, compared with the anti-bailout party Syriza' 26.8% and 71 seats. Together with the socialist Pasok, with 12.4% and 33 seats, pro-bailout parties are expected to control the majority of the parliament. The single currency and risk assets buoyed as the situation in Greece is temporarily stabilized. However, uncertainty indeed remains. Even though a stable government is formed, Greece still has to face severe contraction with the economy likely to decline -6% this year. The New Democracy leader Samaras has stated that Greece will respect its commitments but has also said that he plans to work with other EU leaders on growth policies. Prior to the election, he and his Pasok counterpart Venizelos had presented 18- and 6-point renegotiation plans respectively. The main idea of the proposals is to slow down the pace of fiscal consolidation by extending the duration of the program. They also proposed to reverse or pause the recent employment bills in order to reduce the downward pressure on domestic wages. These renegotiations will have to be approved by the EU before adoption.

The economic calendar is light today but the market will focus on the G -20 summit in Mexico. The Eurozone crisis will remain the chief agenda in the meeting. The US NAHB housing market index might have slipped -1 point to 28 in June.

Commitments of Traders:

Speculators were mixed towards the energy complex in the week ended June 12. Net length for crude oil futures slid -15 979 contracts to 130 858. Heating oil reported returned to the positive territory, recording 4 183 contracts in net length. Net length for gasoline dipped -7 072 contracts to 59 147. Net short for natural gas futures dropped -6 996 contracts to 102 398.

With the exception of silver, speculators were bullish towards precious metals. Net length for gold futures gained +3 451 contracts to 132 315 while that for silver dipped -185 contracts to 9 609 contracts. For PGMs, net length for platinum increased +1 459 contracts to 16 193 while that for palladium rose +1 607 contracts to 5 057.