Euro bounce to $ 1.1240 level after hits 11 years low

Good Morning,

- Euro bounce to $ 1.1240 level after hits 11 years low…as concerns grew that the Greek election results could lead to renewed instability in Europe.

- The euro has fallen sharply against the dollar after the anti-austerity Syriza party won the Greek general election. The euro briefly fell as low as $1.1088 - the lowest level against the dollar in more than 11 years.

- Syriza leader Alexis Tsipras has pledged to renegotiate Greece's debt with international creditors. He has also vowed to reverse many of the austerity measures adopted by Greece since a series of bailouts begun in 2010. "The troika for Greece is the thing of the past," he said after the election result, referring to the country's biggest international lenders - the European Union, International Monetary and European Central Bank.

-Credit Suisse on EUR/USD: The pair has fallen sharply again to leave the immediate bias bearish to our core target at 1.0836/0765. EURUSD fell sharply again post Thursday’s ECB meeting, easily removing the recent cycle low at 1.1460, the 1.1381 level, and directly removing the 61.8% retracement of the entire 2000/08 rise at 1.1212. We allow for a bounce here, however, our core target remains lower at 1.0836/0765. An overshoot to multi-year trend support at 1.0588 should be allowed for, but we would expect this to hold at first. Bigger picture though, we see scope for parity. Resistance shows at 1.1455/60 initially then 1.1498/1500, with 1.1540/41 expected to cap to keep the trend directly lower. Above 1.1679/84 is needed to ease downside risks. CS booked profit on EUR/USD short at 1.1215 and is currently flat on the pair.

- The 30-year U.S. bonds yield hitting a record low of 2.336 percent. The 10-year notes yield fell 5 basis points to 1.759 percent .

- The dollar index rose more than 5 percent so far this year, hitting the highest level since 2003.

- The ECB's plan to pump more than a trillion euro into the banking system in the coming year and a half is underpinning risk sentiment, which boosted European share prices to seven-year highs on Friday.

- Bundesbank President Jens Weidmann, an unabashed critic of the European Central Bank's quantitative easing (QE), told a German newspaper on Sunday he had doubts about the effectiveness of the ECB bond-buying plan. Weidmann, told that he voted against the move and said the sluggish growth in Europe was largely due to high levels of debt and a lack of competitiveness in some individual countries. "It's hard to predict what the effects will be, but in Europe they will probably be less than they were in the United States,"

- Bank of England Kristen Forbes: Said she is optimistic about the global economy’s prospects given robust growth in the U.S. and the potential for cheap oil to boost consumption and investment in the U.K. and elsewhere That could trigger the need for interest-rate increases in the U.K. from their current historic lows of 0.5% sooner than market expectations of the middle of next year “I wouldn’t be surprised if inflation falls more sharply in the short term, but then as growth picks up, the growth effects boost inflation more in the medium term.

- Oil slid in early Asian trade on Monday, with U.S. crude falling close to a six-year low, after Greece's election results heightened uncertainty in the euro zone and depressed the bloc's currency against the dollar.

- Watch today: Germany Ifo Business Climate, EU retail, US PMI.

Have a nice Week !