20 Jul 2015
EUR/USD risks remains with Greek bailout negotiations
FXStreet (Guatemala) - EUR/USD is currently trading at 1.0836 with a high of 1.0844 and a low of 1.0827.
EUR/USD very quickly resumed the downside after the Greek saga made a mile stone in that the Greek parliament approved the austerity measures imposed by the EZ leaders and their new and even tougher reform requirements for a third bailout package last week. The Centrals banks are the main focus again and markets are searching for yield now that there is some progress being made and the risk tone subsequently improving again in global markets which favours the greenback and weighs on the euro as a funding currency.
Greece are to meet their IMF and ECB payments on time today, now that the European Council approved the €7bn bridging loan for Greece from an EU-wide emergency fund. However, there is still more to go in respect of tying up the deal and the economic reforms need to be worked out and finalised. Speaking on ARD TV over the weekend, German Chancellor Angela Merkel explained that she is prepared to consider further debt concessions to Greece once its latest economic reforms are worked out.
However, what is concerning overall in resect to agreeing the bailout is that within the complex negotiations over the last few months on whether to grant Greece the third bailout, EZ leaders had vastly different arguments and most noteworthy was when Germany's and France's relationship was put to the test in recent days with their differentiating visions on Europe being exposed.
Moreover, there are some that are highly pessimistic that the Greeks will be able to rescued with the former Greek Finance Minister Yanis Varoufakis telling the BBC over the weekend that economic reforms imposed on his country by creditors are "going to fail", ahead of the talks on the huge bailout, adding, Greece was subject to a programme that will "go down in history as the greatest disaster of macroeconomic management ever".
EUR/USD bearish below 1.0920
Meanwhile, below 1.0920 still, EUR/USD's technical perspective remains bearish in the short - and the medium term, as Ani Salama, analysts at FXStreet explained. "EUR/USD having scored fresh lows sub-1.0850 and on track to close the week with losses at its lowest level since mid-April. A decisive break below the 1.0820 level (May 2015 monthly low) could see the pair quickly approaching 1.0800 en route to 1.0660, next bearish target. On the other hand, a sustained recovery above 1.1290 is needed to ease the broader bearish pressure, in which case the bounce could extend toward the 1.1400/50 region."
EUR/USD very quickly resumed the downside after the Greek saga made a mile stone in that the Greek parliament approved the austerity measures imposed by the EZ leaders and their new and even tougher reform requirements for a third bailout package last week. The Centrals banks are the main focus again and markets are searching for yield now that there is some progress being made and the risk tone subsequently improving again in global markets which favours the greenback and weighs on the euro as a funding currency.
Greece are to meet their IMF and ECB payments on time today, now that the European Council approved the €7bn bridging loan for Greece from an EU-wide emergency fund. However, there is still more to go in respect of tying up the deal and the economic reforms need to be worked out and finalised. Speaking on ARD TV over the weekend, German Chancellor Angela Merkel explained that she is prepared to consider further debt concessions to Greece once its latest economic reforms are worked out.
However, what is concerning overall in resect to agreeing the bailout is that within the complex negotiations over the last few months on whether to grant Greece the third bailout, EZ leaders had vastly different arguments and most noteworthy was when Germany's and France's relationship was put to the test in recent days with their differentiating visions on Europe being exposed.
Moreover, there are some that are highly pessimistic that the Greeks will be able to rescued with the former Greek Finance Minister Yanis Varoufakis telling the BBC over the weekend that economic reforms imposed on his country by creditors are "going to fail", ahead of the talks on the huge bailout, adding, Greece was subject to a programme that will "go down in history as the greatest disaster of macroeconomic management ever".
EUR/USD bearish below 1.0920
Meanwhile, below 1.0920 still, EUR/USD's technical perspective remains bearish in the short - and the medium term, as Ani Salama, analysts at FXStreet explained. "EUR/USD having scored fresh lows sub-1.0850 and on track to close the week with losses at its lowest level since mid-April. A decisive break below the 1.0820 level (May 2015 monthly low) could see the pair quickly approaching 1.0800 en route to 1.0660, next bearish target. On the other hand, a sustained recovery above 1.1290 is needed to ease the broader bearish pressure, in which case the bounce could extend toward the 1.1400/50 region."