3 Jul 2015
EUR/USD looks to Greece for direction
FXStreet (Edinburgh) - The shared currency is closing the second consecutive week with losses vs. its American counterpart, extending the double rejection from levels beyond the 1.1400 barrier during June.
It’s all about Greece now
While the pair traded almost isolated from the Greek issues during past weeks, the deterioration of the domestic scenario in combination with the increasing effervescence between the Greek government and the EU institutions, and the lack of progress in the debt talks have all gained considerable weigh on the pair particularly in the recent couple of weeks.
The Greek default on the IMF loan repayment, the successive rejections of proposals by the Greek government and the rising scepticism amongst EU officials have derailed in Sunday’s referendum, and whether markets admit it or not, in the near or longer run, it is eventually a matter of ‘take it or leave it’ for Greece.
At the moment, the latest polls are pointing to a very close outcome, with both options hovering over the 43%, while there’s still a +10% of indecisive voters.
Almost surely, EUR/USD will once again see an unusually volatile start of the week on Monday. The direction will clearly be determined by the vote of the Greek people.
It’s all about Greece now
While the pair traded almost isolated from the Greek issues during past weeks, the deterioration of the domestic scenario in combination with the increasing effervescence between the Greek government and the EU institutions, and the lack of progress in the debt talks have all gained considerable weigh on the pair particularly in the recent couple of weeks.
The Greek default on the IMF loan repayment, the successive rejections of proposals by the Greek government and the rising scepticism amongst EU officials have derailed in Sunday’s referendum, and whether markets admit it or not, in the near or longer run, it is eventually a matter of ‘take it or leave it’ for Greece.
At the moment, the latest polls are pointing to a very close outcome, with both options hovering over the 43%, while there’s still a +10% of indecisive voters.
Almost surely, EUR/USD will once again see an unusually volatile start of the week on Monday. The direction will clearly be determined by the vote of the Greek people.