Euro eyes Greece
Greece is still in focus and today’s summit may bring about the unlocking of finances that the Athens administration desperately need to avoid defaulting.
Yesterday, the Greek prime minister Alexis Tsipras put forward new proposals and even though nothing has been agreed upon the market has high hopes for a deal. Mr Tsipras stated the proposal was ‘mutually beneficial’ and more importantly Martin Selmayr of the European Commission described the reforms as a ‘good basis for progress’.
The market has seen this Greek debt saga rumble on for five years and we have always seen a deal reached in the end, preventing Greece from going bankrupt; dealers are expecting history to be repeated.
EUR/USD has been in an upward trend since March, and the initial target is $1.14. A move through that mark will put the May high of $1.1467 will in focus; however, any pullback should find support at $1.13, and if that level is punctured traders will look to $1.12 for support.