The main focus of the past trading week was the situation in Greece, particularly the upcoming referendum on austerity demanded by international creditors. Surprisingly, this did not mean another week of losses for the euro as the currency managed to rally in the adverse trading environment.
All negotiations about the next installment of the bailout package for Greece have ended as European authorities wait for the outcome of the Greek voting on July 5. Meanwhile, the International Monetary Fund released a report that talked about a huge amount of funds and big debt haircuts that are required to keep the Greek economy afloat. The euro was attempting to bounce during the week despite all the bad news and was successful, unlike during the previous week.
The shared 19-nation (at least for now) currency get a bit of support from the worse-than-expected US non-farm payrolls. Yet it is unlikely to have a long-lasting impact, especially if the Greeks say ‘no’ at the referendum.
EUR/USD rose from 1.1005 to 1.1097, touching the weekly high of 1.1275. EUR/GBP gained from 0.7013 to 0.7121, bouncing from the weakest level since November 2007. EUR/JPY edged higher from 135.07 to 136.30.
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