The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Euro edges higher
The euro dropped to a new 11-year low versus the dollar in overnight trading, but has managed to claw its losses back and is now trading above Friday’s close.
As expected the anti-austerity Syriza party claimed the most seats in the Greek general election, and the radical left-wing party is in the process of forming a coalition government with right of centre independents.
The question that is looming over the euro is, what will the new Greek government demand? the market is afraid that Athens will look to renegotiate the terms of the bailout or discuss the possibility of leaving the eurozone, and the latter will send shockwaves through the region.
The downward trend is still in place and $1.12 is acting as support. Should this metric be held the 50-hour moving average of $1.1315 will be the target. A move below $1.12 will put the overnight low of $1.1097 in sight.