The yen rose 0.2 percent to 122.57

Good morning from beautiful Hamburg and welcome to our latest Daily FX Report for this week. Greek Prime Minister Alexis Tsipras was given hours to come up with a plan to keep his country in the euro as citizens endure a second week of capital controls. German Chancellor Angela Merkel said “time is running out,” as she and French President Francois Hollande, leaders of the two biggest countries in the euro bloc, responded for the first time to Sunday’s referendum. The European Central Bank piled on the pressure by making it tougher for Greek banks to access emergency loans. Finance ministers from the 19-member region gather on Tuesday for an emergency meeting. After promising voters a “no” against austerity would strengthen his negotiating hand, the onus is on Tsipras to prove he can get a deal with creditors insistent on tax hikes and spending cuts as the price for a new bailout of Europe’s most indebted nation.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

The euro dropped to a one-week low against the dollar as Greeks voted against yielding to further austerity, raising the risk of an exit from the currency union. The common currency pared its losses as Finance Minister Yanis Varoufakis’s resignation boosted speculation Greece will reach a deal with its creditors. Sixty-one percent of Greek voters backed the rejection of further spending cuts and tax increases in a referendum, data on the Interior Ministry website show. The yen strengthened against most of its major peers as the crisis spurred demand for haven assets. The european currency fell 0.5 percent to $1.1056 at 5 p.m. New York time, having declined as much as 1.3 percent to reach $1.0970, the lowest level since June 29, after the announcement of the referendum. The shared currency weakened 0.7 percent to 135.52 yen. Against the U. S. dollar, the yen rose 0.2 percent to 122.57. The Greek turmoil has already shown up in currency pairs other than the euro against the dollar. Swiss National Bank President Thomas Jordan said on June 29 that the central bank intervened in markets as demand for francs soared after Greece announced plans to hold the referendum. Sweden’s central bank last week cut its main interest rate and expanded bond purchases as the turmoil in Greece raised the specter of further krona gains. The franc rose 0.2 percent to 1.0421 per euro. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 of its major peers, gained 0.2 percent to 1,189.87. It has climbed 5.2 percent this year.

Daily Technical Analysis

EURNOK (Daily)

The EURNOK is showing strength after the bearish period since 2014. Yesterday the currency pair reached the important resistance level around 8.935. Maybe it is possible that buyers are able to break through sustainable and recover the previous downward movement. Currently the Awesome Oscillator indicator supports the bullish view.

Support & Resistance (Daily)