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 bounces back
EUR/USD has pulled back some of the losses it endured after the catastrophic news that Greek banks will remain shut until next week, and the nation is set for a crunch referendum at the weekend. It must be said that the euro is holding up relatively well against the dollar in what could be the beginning of the end for the Greece’s membership of the currency union. For the time being, the dust has settled, and confidence is coming back – but should the situation in Greece take another sour turn, EUR/USD will quickly plunge.
EUR/USD has been trading higher this morning and the $1.10 mark is providing support, but the $1.11 level is proving a struggle for the currency pair. If $1.11 is cleared again the gap created at $1.1160 will be the target, and then $1.12 will be brought into play. An important level for the currency pair over the past three months has been $1.10. If it is cleared the support at $1.08 will be the next level to watch.