The euro fell with high-yielding currencies

Good morning from beautiful Hamburg and welcome to our first Daily FX Report for this week. Greece voted against yielding to further austerity demanded by creditors, leaving Europe’s leaders to determine if the renegade nation can remain in the euro. With 85 percent of votes counted, 62 percent of voters backed Prime Minister Alexis Tsipras and his Coalition of the Radical Left, or Syriza, by voting “no” to the latest proposals for spending cuts and tax increases. Thirty-eight percent voted “yes,” less than opinion polls predicted, according to results from the Interior Ministry. The verdict turns the tables on German Chancellor Angela Merkel and her counterparts across Europe, who must decide if a financial rescue of the region’s most indebted country is still possible. It significantly raises the chances of a Greek exit from the single currency, as the country’s banks run out of cash and its economy staggers toward all-out collapse.

Anyway, we wish you a successful trading day and a relaxing weekend!

Market Review – Fundamental Perspective

The euro fell with high-yielding currencies, while U.S. stock futures and crude oil slid as the shock waves from Greek voters’ rejection of austerity started moving through financial markets. Demand for haven assets fueled gains in Treasury futures and gold. The euro fell 1 percent to $1.1009 by 7:26 a.m. Tokyo time, retreating against all 16 major peers. The Australian dollar broke below 75 U.S. cents for the first time since 2009, even after China stepped up efforts to arrest a stock selloff. Standard & Poor’s 500 Index futures slid 1.4 percent and Japanese index futures also dropped. U.S. oil tumbled 3.5 percent and copper futures fell. Ten-year Treasury futures rose to the highest level since June 1 as gold added 0.4 percent. With more than 95 percent of the ballots counted, Greeks have voted 61 percent against austerity measures required to win another bailout package, according to figures posted on the Interior Ministry’s website. German Chancellor Angela Merkel and French President Francois Hollande called for a summit of euro-area leaders to be held July 8. The result of the referendum is “to be respected,” the German government’s press office said in an e-mail. European Union President Donald Tusk confirmed a meeting will be held Tuesday in a Twitter post. Gold rose to $1,173.09 an ounce in the spot market, while silver added 0.3 percent to $15.7470 per ounce. The yen, also regarded as a haven, gained against all major currencies Monday, rising 0.3 percent to 122.38 per dollar.

Daily Technical Analysis

EUREX.FGBL (4 Hours)

The Bund Future was able to recover some losses of the last months. After reaching the downward trend line the second time the Future open’s opportunities for buyers and sellers. In short term the Awesome Oscillator Indicator shows an upward movement which might be possible to continue. Today’s opening after Greek’s decision should be considered.

Support & Resistance (H4)