Update on Greece

June 29, 2015

Update on Greece

The euro is under pressure in early-week trade as Greece’s talks with the Eurogroup broke down over the weekend, and the ECB refused to top up ELA assistance. Greece has consequently imposed capital controls and announced a referendum for next Sunday, which will determine whether the electorate has the stomach to exit the euro. Finally, after five years, the Greek drama is coming to a definitive head. Polls suggest that the people of Greece would rather compromise to stay in the euro than exit, but markets will remain on tenterhooks this week ahead of the referendum. Some key US data are also due this week, culminating with the release of the June payrolls report on Thursday (Friday is a holiday in the States). EURUSD hit a four-week low at 1.0953 after closing Friday at 1.1166, subsequently recovering above 1.1000. Recoveries will likely remain muted affairs, though incoming polls out of Greece will have potential to create volatility this week.

EURUSD is trading higher and tries to close the gap. Not suprisingly EUR is down against all the currencies but at the time of writing there is no sense of panic spreading across the FX markets. This is evidenced at the time of writing by EURUSD trading higher after the gap opening. Asian, European and US equity futures markets are down and Gold is trading higher by  0.4%.

EURUSD remains bearish as it is difficult to anticipate what the political players will do and how it impact markets. Over the next few days we should see trading opportunities for technical traders that know how to take advantage of nervous markets and volatility. EURUSD has a resistance level not far above current price action at 1.1130 which in the light of what’s happening with Greece suggests that EURUSD will trade lower after the return move is over. The June 1st candle seems to be the first pivotal support area and I expect this support hold today unless new suprising news items come up.

Janne Muta

Chief Market Analyst


Publication source
HotForex information  HotForex reviews

October 27, 2016
Brexit Barometer
The Brexit vote back in June taught markets never to take anything for granted and the same holds true for the upcoming US Presidential election. A poll lead for Trump in Florida yesterday, combined with some further revelations in the daily mud-slinging...
October 26, 2016
Sterling reversal
What we saw in sterling yesterday was instructive of the dilemma that may face other central bankers before long. Carney played down expectations of a further easing in policy before the end of the year, as was strongly suggested in August when they eased policy in the wake of the Brexit referendum...
October 24, 2016
Important economic events for the coming week
Monday, October 24, 2016 - JPY Small Business Confidence (OCT), EUR Markit/BME Germany Manufacturing PMI (OCT P), USD Markit US Manufacturing PMI (OCT P)...

Larson&Holz IT Ltd Rating
HotForex Rating
XM Rating
FXCM Rating
HYCM Rating
FxPro Rating

Banc De Binary Rating
Porter Finance Rating
TropicalTrade Rating
TopOption Rating
Beeoptions Rating
Empire Option Rating