EUR/USD has reversed a significant portion of its gains (related to optimism on Greece), trading under 1.1140 after having reached a peak of 1.1214.
The move comes as sounds of rejection to the Greek measures are heard in Germany, Greece and other euro-zone countries. This is not a done deal, at least not yet. In the US, Fed member Rosengren, who is considered a dove, talked about raising rates this year.
Greece’s former finance minister Yanis Varoufakis will not be in parliament due to “family matters”. He did express support for his replacement Euclid Tsakalatos, but did not publicly endorse the proposals laid out by his former boss Alexis Tsipras.
Regarding austerity, they consist of a full climb down. However, they include a longer term program, debt restructuring and an investment plan, things that did not appear in the original proposal.
Rosengren, which heads the Boston Fed is not sure that the Greek crisis will slow the US even though it adds uncertainty. He preferes to focus on inflation, that remains troubling as it is below 2%.
Support awaits at 1.1130 followed by 1.1050. Resistance is at 1.12, followed by 1.1290.
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