Yesterday (6th July), the pair EUR/USD increased by 0.6% compared to opening price of $1.09865. Ending the trading session price closed at $ 1.10543. During European session yesterday the pair fell sharply on the results of the referendum of Greek on 5th July which showed a majority of people say No to the conditions of the creditors, as exacerbated possibility of Greece leaving the Euro zone, making the Euro falling. At the U.S session, the pair EUR/USD recovered thanks to the US economy data was not as good as expected. Non-Manufacturing ISM PMI reached 56.0 points in June, higher than the previous month but lower than expectation of economists.
Today, the situation of Greece will impact the market. In Brussels, European officials and Greece have an emergency meeting to discuss the Greek debt. Greek Prime Minister Alexis Tsipras is extended only a few hours to give the plan to help the country place in the Euro zone, while the people still suffer state capital controls.
German Chancellor Angela Merkel said: “The time was almost over.” This is the first reaction of her and French president Francois Hollande since the Greek referendum on Sunday. European Central Bank (ECB) also increased pressure when making the difficult Greek banks to access emergency liquidity assistance (ELA).
Meanwhile, Greek prime minister Alexis Tsipras is expected to submit a new proposal to the creditors at the emergency summit meeting today (7/7). The plan will include a 30% cut requires after the people vote against the request “austerity” of creditors last Sunday.
In the emergency meeting, the presidents of the European Commission (EC), Jean-Claude Juncker said there will be no deal reached today and that all parties must discuss “what ‘respecting Greek vote’ means.”
“The Greek Prime Minister knows that the question asked in the Greek vote was no longer valid. I’m against a Grexit but we must discuss what ‘respecting the Greek vote’ means,” said Juncker in a speech Tuesday morning.
The process of the meeting between Euro zone officials and Greece signals instability in Greece increasing, that dragged the Euro fell sharply in morning European session.
Currently the price is trading at $1.09760, down 0.7% compared to the opening price of $1.10542.
Forecast: The pair EUR/USD will continue to fall towards the support level of $1.08200.