Euro edges higher
The euro dropped to a new 11-year low versus the dollar in overnight trading, but has managed to claw its losses back and is now trading above Friday’s close.
As expected the anti-austerity Syriza party claimed the most seats in the Greek general election, and the radical left-wing party is in the process of forming a coalition government with right of centre independents.
The question that is looming over the euro is, what will the new Greek government demand? the market is afraid that Athens will look to renegotiate the terms of the bailout or discuss the possibility of leaving the eurozone, and the latter will send shockwaves through the region.
The downward trend is still in place and $1.12 is acting as support. Should this metric be held the 50-hour moving average of $1.1315 will be the target. A move below $1.12 will put the overnight low of $1.1097 in sight.