This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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.