The euro recovered from its early losses against the other major currencies ahead of European session on Monday, as traders await the Eurozone leaders’ emergency summit meeting on Tuesday.
The Greeks overwhelmingly rejected the terms of an international bailout in a historic referendum on Sunday, potentially setting the stage for the country to leave the currency bloc.
Thousands of Greeks celebrated in the streets of Athens, waving Greek flags and chanting “No, No” after rejecting new austerity terms required for availing fresh financial aid.
European Council President Donald Tusk announced late Sunday that Eurozone leaders will meet in Brussels on Tuesday for an emergency summit to tackle the crisis.
Meanwhile, Greek Finance Minister Yanis Varoufakis said that he is resigning despite the Greek people rejecting proposals by the creditors in Sunday’s referendum, as requested by his government.
The European Central Bank is set to discuss on Monday whether to maintain the emergency liquidity assistance to Greece banks. The assistance from the ECB is vital for Greece banks to stay liquid.
In other economic news, data from Destatis showed that Germany’s factory orders decreased at a slower-than-expected pace in May.
New orders in the manufacturing sector fell a seasonally and working-day-adjusted 0.2 percent month-over-month in May, in contrast to a 2.2 percent climb in April, which was revised up from 1.4 percent growth. Economists had expected a 0.4 percent drop for the month.
In the Asian session today, the euro fell against its major rivals.
Ahead of European session, the euro rose to 0.7109 against the pound and 1.1087 against the U.S. dollar, from early 1-week lows of 0.7053 and 1.0968, respectively. If the euro extends its uptrend, it is likely to find resistance around 0.72 against the pound and 1.12 against the greenback.
Against the Swiss franc and the yen, the euro dropped to 1.0433 and 135.76 from early 1-week lows of 1.0351 and 133.86, respectively. The euro may test resistance near 1.06 against the franc and 138.00 against the yen.
Moving away from an early 6-day low of 1.3821 against the Canadian dollar, the euro climbed to 1.3957. On the upside, 1.40 is seen as the next resistance level for the euro.
Looking ahead, Swiss CPI for July, the German construction and retail PMIs for June and Eurozone Sentix investor confidence data for July are due to be released in the European session.
In the New York session, Markit’s final U.S. service sector PMI, ISM’s U.S. non-manufacturing PMI, U.S. labor market conditions index and Canada Ivey PMI, all for June, are slated for release.
The material has been provided by InstaForex Company – www.instaforex.com