FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the common currency gave back part of its Monday’s gains, ending the day around the 1.1150 level against the greenback, after another round of speculations and rumors surrounding Greece.
Key Quotes:
“The day started with tepid data coming from Europe, as German Retail sales grew 0.5% in May compared to a month before, but the annual reading resulted at -0.4% against expectations of a 2.5% raise.”
“Unemployment in the country fell less than expected in June, whilst annual inflation in the EU matched expectations of 0.2%.”
“Nevertheless, the market was all about the Greek drama, with the default of the country on the IMF driving the pair down to 1.1133 earlier in the day. As the day developed, news shown that Athens submitted a request to the ESM for a two-year agreement to cover the country’s financing needs and including a debt restructuring at the same time, but German Chancellor Angela Merkel opposed talking up a deal before the July 5th referendum.”
“The pair sunk by London close down to 1.1111, maintaining a heavy tone in the short term, ahead of the Asian opening. The 1 hour chart shows that the intraday recovery was again contained by the 200 SMA, whilst the 20 SMA turned lower above the current price and that the technical indicators present mild bearish slopes below their mid-lines.”
“In the 4 hours chart, however, the price is barely below its 20 SMA, whilst the moving averages continue to hover around their mid-lines, lacking directional strength at the time being.”
(Market News Provided by FXstreet)