EUR/USD is shooting back up from the lows that it reached in early Asia. The pair bounced from around 1.10 to 1.1110 but still below 1.1160. Volatility is extremely high
There is some profit taking but also hope that the recent escalation could trigger a solution, and the pressure could come from outside.
There are positive comments coming out from French officials about an open door for a solution. In addition, the US is reported pressuring its European peers to get their act together, and this could include debt structuring.
Also the Spanish finance minister, which opposed the Greek stance for quite a while, is showing optimism for a solution.
Asian stock markets tumbled and European ones are expected to open lower. Bond yields on Italian and Spanish yields are higher. There is limited contagion so far, but moves are choppy. Update: European stock markets tumble down at the open, with the DAX falling over 4%.
The pair fell as low as 1.0950 after opening with a gap at around 1.10. The gap line is very important.
Here is how it looks on the chart. The high so far is 1.1110 but the pair is retreating once again. 1.1050 is important to watch.Get the 5 most predictable currency pairs