The dollar fell to a one-week low of 122.55 yen

Good morning from Hamburg and welcome to our first Daily FX Report for this week. After bailout talks between the leftwing government and foreign lenders broke down at the weekend, the European Central Bank froze vital funding support to Greece's banks, leaving Athens with little choice but to shut down the system to keep the banks from collapsing. Banks are expected to be closed all next week, and there will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday. Capital controls are likely to last for many months at least. The failure to reach a deal with creditors leaves Greece set to default on 1.6 billion euros of loans from the International Monetary Fund that fall due on Tuesday. Athens must repay billions of euros to the European Central Bank in the coming months.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

Euro exchange rates fell in Asia early on Monday after Greece failed to strike a deal with its international lenders to secure more emergency funding at the weekend, forcing it to introduce capital controls and keep its banks shut. The euro EUR fell nearly 2 U.S. cents to a one-month low around $1.0990 in early Asia Pacific trade according to Reuters data, from around $1.1165 late on Friday. Against the Swiss franc, the euro fell to around 1.0260 francs, its weakest level since late April, while it plumbed a one-month low around 134.90 yen as investors piled into the Swiss and Japanese currencies which often appreciate during times of uncertainty. The dollar fell to a one-week low of 122.55 yen. Concerns about a liquidity crunch at Greek banks rose after the country's financial stability council recommended keeping banks shut for the next six working days.
The prospect of a Greek default has risen after Athens effectively rejected proposals made by its European lenders in exchange for more credit at last-minute bailout talks at the weekend. Greek Prime Minister Alexis Tsipras shocked European officials by instead calling for a referendum to be held on July 5 to ask Greek voters to decide on whether to accept the bailout terms which his government opposes. Analysts said that in addition to increasing uncertainties about Greece's future in the euro zone, the vote would raise political risks for Tsipras's government if the public votes in favor of accepting the bailout proposals.

Daily Technical Analysis

GBP/USD (Daily)

As the chart shows, the GBP decreased steadily versus the USD since the mid of July 2014. At the support around 1.4726 the bearish trend was broken and the price rose till the level around 1.5770. It has fallen after it reached that resistance level. The CCI is showing that the pair is likely to move upward.

Support & Resistance (Daily)