Euro higher after Greece defers
EUR/USD is up on the day after Greece decided last night to delay its repayment until the end of the month, and it will consolidate it into one large repayment. This is a classic case of Greece kicking the can down the road, and if the indebted nation is finding it difficult to make one repayment how will it manage several all in one go?
EUR/USD has reacted well to the news but the situation will rear its ugly head again in a few weeks.
The non-farm payrolls at 1pm (London time) will be the focus of the trading session, and the market is expecting 226,000 jobs to have been added in May, and for the unemployment rate to remain at 5.4%. Both the ADP employment and initial jobless claims showed an improvement in the US jobs numbers, and this is an important factor in the Federal Reserve’s decision over interest rates.
EUR/USD has been gaining ground since the end of last month, and now that Greece is on the back burner, there is little to hold it back. The $1.12 level is acting as support, and if this mark is held the resistance at $1.14 will remain the target. Should $1.12 be punctured, the next level of support down will be $1.10.