The euro is under pressure from circumstances

29.06.2015
The threat of Greece defaulting and the closure of local banks put very strong pressure on the euro. Investors are moving away from risk, but the time for manoeuvres still remains.

On Monday morning the euro sharply weakened. This is understandable: Saturday's meeting of the European Commission with the finance ministers of the eurozone countries did not finish with anything productive. On June 30, the IMF expects Greece to service part of the principal debt - the payment tranche of 1.7 billion euro. There is no money in the treasury, as there is no transfer of the final tranche of the latest aid package for Athens.

The government reasoned simply:  a referendum is appointed for July 5. Let the people decide whether to tighten their belts tighter or let things play out. Until July 6 the banks in the country are closed - apparently in order to avoid collapse. The outflow of funds by businesses and the public in the last week was more than 1 billion euro daily. There's almost nothing to be frozen - all has already been emptied.

Daily data for the euro area on a similar background are in the shadows of the market attention. Sentiment in the economy in June was 103.5 points against 103.8 points in the forecast. The index of consumer confidence this month is estimated at -6 points with the forecast of -5.6 points. The index of business optimism in the industry in June is -3 points. At least here the actual data is in line with expectations.

For now all attention of the market will be focused on Greece. Any news will provoke a strong movement in the euro/dollar and, as a consequence, in other tradable pairs.
 
RoboForex Analytical Department
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