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The media has  shown a letter by Greek PM Alexis Tsipras to the creditors and painted it  a backing down by Tsipras. Indeed, there are concession that were made there. However, the letter is from yesterday, and it came hand in hand with the request for a new 2 year ESM bailout which consists of debt restructuring.

For EUR/USD, this resulted in a 50 pip round: up north to 1.1150 and a drop back  towards the round number of 1.11 as the offer was rejected by EU officials.

German finance minister Wolfgang Schäuble  said it is difficult to deal with Greece now. A deal is possible only after the referendum. He adds: “Problem with Greek ‘yes’ vote: How can we trust a gov’t to carry out a program it encouraged its people to reject?”

The situation is quite volatile after Greece has defaulted on the IMF and as the  Greferendum on Sunday.

Tsipras will address the nation shortly.

In the meantime, Merkel talks about an open door but only after the referendum .She says that Greece abandoned successful talks and that there are hard days awaiting Greeks.

She keeps insisting that the IMF must be involved even though the IMF wants debt restructuring that Merkel refuses to grant.

Here is how it looks on the chart. The low for the day is 1.1094. Support awaits at 1.1050 and resistance at 1.1160. The pair didn’t reach this level on the hopeful move up.

Euro dollar on aleedged Tsipras caving in July 1 2015


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