EUR/USD continued advancing and reached a high of 1.1160 – around the close seen on Friday. With this move, the big Sunday gap is closed. Update: the new high is already 1.1172.
In the meantime, we had comments from various European officials. Apart from the own-goal comments from Juncker, we heard a clear message that Sunday’s Greek referendum is basically a decision on a Grexit.
German Chancellor Angela Merkel made a joint statement with her coalition partner Sigmar Gabriel. While they tried to avoid influencing the Greferendum (the new buzzword) they did “point the consequences”. Gabriel said that Sunday’s vote is a clear decision about euro-zone membership.
Merkel did say that a failure of the euro is a failure of Europe but hinted that Germany is prepared for such an outcome. French president François Hollande also made it clear that the Greferendum is about euro. UK PM David Cameron held a meeting on Greece in order to plan contingency plan.
More: ‘A Referendum On EUR’: What’s Next For Greece? – Credit Agricole
Also Italy’s PM Matteo Renzi made a clear point:
The point is: greek referendum won’t be a derby EU Commission vs Tsipras, but euro vs dracma. This is the choice.
“” Matteo Renzi (@matteorenzi) June 29, 2015
In Athens, we know that PM Alexis Tsipras will address the nation at 18:00 GMT. So far, there is no panic in the streets, but people are certainly worried.
Tomorrow is June 30th, the double deadline: the bailout program comes to an end and Greece is due to pay the IMF, something that is very unlikely to happen.
It is still unclear what the ECB will do: if they pull the plug on ELA or not. According to reports, the Bank of Greece asked for 6 billion euros in additional emergency support.
Greek crisis – all the updates in one place
Here is how the closed gap looks on the 30 minute EUR/USD chart. Significant resistance awaits at 1.1290. If 1.1160 is broken definitively, this will be the next target. On the downside, 1.1050 is important support:
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