Euro focuses on Greece

The greenback has remained resilient over the past week and managed to gain some ground against its major peers.

Source: Bloomberg

EUR/USD will be the main one to watch this week with Greece taking a final shot at electing a president. Prime Minister Samaras nominated Stavros Dimas and failed to get him elected after the first two attempts. Basically, Samaras has 155 of 300 seats in parliament and needed 200 votes to get his nominee elected. Today he only needs 180 but still this looks like a long shot. The positive though is that should we go to elections, recent polls have shown that anti-bailout Syriza only holds a small lead to Samaras’ New Democracy party. Traders however remain quite sceptical about the euro given the challenges the region is facing. EUR/USD is currently testing $1.2160 and is on the verge of breaking this which also happens to be last week’s lows. A break would leave the pair vulnerable to a move down to $1.2000. On the other hand, a surprise positive outcome from the vote could result in a sharp recovery for EUR/USD and potentially trigger a broad risk recovery.    

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