Euro knocked by Greece
EUR/USD is under pressure yet again as no deal has been reached between Greece and its creditors. The meeting between Greek politicians and the EU officials ended without an agreement, and there are still 'significant gaps' between the parties. We are now in the middle of June, and the end of month deadline is creeping closer. If the country can’t unlock the next tranche of the bailout it will face bankruptcy.
Mario Draghi is speaking at 2pm (London time) in Brussels, and dealers will be paying close attention to what he says. Mr Draghi is addressing the European Parliament’s economic and monetary affairs committee, and volatility is expected to pick up during his announcement.
The lack of progress over the Greek debt crisis has pushed the euro lower in the past week, and the support at $1.10 is the target to the downside. The resistance at $1.13 is the initial target to the upside, and if it is cleared $1.14 will be brought into play; however, that mark currently seems a long way off.