Market attention is glued to Greece at the beginning of the new week. Greek people voted against the austerity measures on Sunday. As a result, market expectations for Grexit surged. EU authorities will hold an emergency meeting on Tuesday to discuss the options available on the table. The next deadline for Greece comes on July 20. The country owes 2.5 bln euros to ECB.
EUR/USD opened the week with a bearish gap below 1,1000, but closed it when the dust settled a little bit. The market still believes that the Greek crisis could be resolved with negotiations. Euro met resistance at the 100-hor MA below 1,1100, however. Support is seen at 1,1030 and 1,0950. Market dynamics on Tuesday will be defined by the Greek-related headlines.
GBP/USD also managed to close the morning gap, recovering above1,5600 on the weak US non-manufacturing PMI. Watch the UK manufacturing production figures tomorrow (forecast – positive). Watch the trend resistance at 1,5680, however. We remain bearish below 1,5900.
USD/JPY tested the 122,00 support in Asia, but regained ground rather quickly. Resistance – 123,40 and 123,70, support - 121,80. AUD/USD dipped to a 6-year high at0,7460 on Monday,but crawled back into the green zone. RBA meeting will be held on Tuesday – no rate cut expected.
As for the United States, don’t miss the May trade balance on Tuesday and the FOMC meeting minutes on Wednesday.
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