Euro Recovers Ahead Of EU Summit
July 06 2015 - 3:06AM
RTTF2
The euro recovered from its early losses against the other major
currencies ahead of European session on Monday, as traders await
the Eurozone leaders' emergency summit meeting on Tuesday.
The Greeks overwhelmingly rejected the terms of an international
bailout in a historic referendum on Sunday, potentially setting the
stage for the country to leave the currency bloc.
Thousands of Greeks celebrated in the streets of Athens, waving
Greek flags and chanting "No, No" after rejecting new austerity
terms required for availing fresh financial aid.
European Council President Donald Tusk announced late Sunday
that Eurozone leaders will meet in Brussels on Tuesday for an
emergency summit to tackle the crisis.
Meanwhile, Greek Finance Minister Yanis Varoufakis said that he
is resigning despite the Greek people rejecting proposals by the
creditors in Sunday's referendum, as requested by his
government.
The European Central Bank is set to discuss on Monday whether to
maintain the emergency liquidity assistance to Greece banks. The
assistance from the ECB is vital for Greece banks to stay
liquid.
In other economic news, data from Destatis showed that Germany's
factory orders decreased at a slower-than-expected pace in May.
New orders in the manufacturing sector fell a seasonally and
working-day-adjusted 0.2 percent month-over-month in May, in
contrast to a 2.2 percent climb in April, which was revised up from
1.4 percent growth. Economists had expected a 0.4 percent drop for
the month.
In the Asian session today, the euro fell against its major
rivals.
Ahead of European session, the euro rose to 0.7109 against the
pound and 1.1087 against the U.S. dollar, from early 1-week lows of
0.7053 and 1.0968, respectively. If the euro extends its uptrend,
it is likely to find resistance around 0.72 against the pound and
1.12 against the greenback.
Against the Swiss franc and the yen, the euro dropped to 1.0433
and 135.76 from early 1-week lows of 1.0351 and 133.86,
respectively. The euro may test resistance near 1.06 against the
franc and 138.00 against the yen.
Moving away from an early 6-day low of 1.3821 against the
Canadian dollar, the euro climbed to 1.3957. On the upside, 1.40 is
seen as the next resistance level for the euro.
Looking ahead, Swiss CPI for July, the German construction and
retail PMIs for June and Eurozone Sentix investor confidence data
for July are due to be released in the European session.
In the New York session, Markit's final U.S. service sector PMI,
ISM's U.S. non-manufacturing PMI, U.S. labor market conditions
index and Canada Ivey PMI, all for June, are slated for
release.
Euro vs Sterling (FX:EURGBP)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs Sterling (FX:EURGBP)
Forex Chart
From Apr 2023 to Apr 2024