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Greece returns to haunt the euro

EUR/USD was one of the more interesting pairs to watch as a combination of a stronger greenback and weaker euro saw it drop to a one-month low.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Greece
Source: Bloomberg

The pair was trading at around $1.1200 on Friday and has since dipped below the $1.1000 handle for the first time since April 29. There is plenty of talk around Greece at the moment, with €1.6 billion worth of payments over four tranches due in June.

There are fears Greece does not actually have the money and, given the last €750 million payment was made using reserves already with the IMF (which it needs to pay back anyway), the situation is a bit grim at the moment.

I feel headline risk around the event will be rampant this week and could keep the single currency on the back foot. The short-term uptrend which was in place since April lows has also now been broken and the price action is likely to come under further pressure in the near term. A close below $1.1000 could encourage further short-term selling pressure.

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EUR/USD

EUR/USD

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.