EUR/USD Fundamental Analysis – July 7, 2015 – Forecast

Analysis and Recommendations:

The EUR/USD is down 34 points but recovered from the initial market response sending it below the 1.10 level. The euro is trading at 1.1077 at this writing and steadily making up losses Greece’s unorthodox Finance Minister Yanis Varoufakis resigned Monday, less than 24 hours after he successfully helped Athens win a divisive referendum.

He said he was resigning because Greek Prime Minister Alexis Tsipras believed his departure might help Greece “achieve a deal” with the creditors.

The surprise development comes as Greece’s overwhelming repudiation — by 61.3% to 38.7% — of the harsh austerity measures sought by the International Monetary Fund, European Central Bank and European Commission puts Athens on a collision course with Europe’s political leaders while its scrambles to avert economic collapse.

After his resignation the ECB announced that they would extend their lifeline to Greek banks. While the Governing Council is due to talk on Monday on whether to keep supporting the country’s crippled lenders, it’ll probably be reluctant to preempt a planned meeting of euro-area leaders. German Chancellor Angela Merkel and French President Francois Hollande will meet late Monday, and European Union President Donald Tusk called a euro-area summit for Tuesday.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Today’s economic releases:

Greeks vote no!!!

Upcoming Economic Events that you should be monitoring:

Tuesday, July 7, 2015

Government Bond Auctions

Date Time Country

Jul 07 11:10 Austria Holds RAGB bond sale

Jul 07 11:30 UK Conventional Gilt auction

Jul 07 19:00 US Auctions 3-year notes

Jul 08 11:30 Germany Eur 4bn Jun 2017 Schatz

Jul 08 17:30 Italy Announces details of BTP/CCTeu on 13 Jul

Jul 08 19:00 US Auctions 10-year notes

Jul 09 19:00 US Auctions 30-year bonds