EURO Gets Smoked, ATMs Run Dry, Is It Time To BUY, BUY, BUY?
GBP/USD is currently trading at about 1.5720, GBP/EUR is at about 1.4167, with GBP/EUR being a lot higher caught over 1.4300 this morning and the EUR/USD crashing down into the mid-1.0900s over the course of the Asian session as further bad news from Greece released over the course of the Weekend. Prime Minister Tsipras’s decision to call a referendum on Greek acceptance of any further bailout conditions is basically putting a gun to the head of the Greek state in these Eurozone negotiations.
We need to remember that the Saturday’s EuroGroup meetings is completely null and void and we’re staring down the barrel of a Grexit gun as it stands at the moment. We also saw capital controls imposed by the Greek government, no one is allowed to withdraw from Greek banks as they’re shut for the entirely week and the European Central Bank has also paused the amount of liquidity that’s providing to Greek banks as it stands at the moment.
As I’ve said, the Euro is hit very hard, bond yields have flown higher, the Greek 10-year is up around 3.5{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} on the day already. We’ve also seen that the bonds of Spain, Portugal and Italy have also been hit as well. Stock markets are collapsing in Europe, the German Stock Exchange is down by 4.5{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} at the moment, with similar figures in France, Italy and in Spain, with the United Kingdom also touched by this as well.
We have to say that this is getting closer to a Grexit day by day, as there’s no way the International Monetary Fund is going to get their money back on Tuesday and the European Central Bank is going to get its money back by July 20th i.e. the €3.5 billion bond repayment and as such we’re definitely in the end game of Greece being a member of the Eurozone. It’s a very volatile day in view, but for now the Euro is getting hit very hard.
Just as we mentioned earlier, the banks in Greece will continue to keep their doors shut starting Monday through the entire week. Anthimos Thomopoulos, the Chief Executive Officer of Piraeus Bank SA intimated newsmen of his thoughts on Sunday after concluding a meeting of the government’s financial-stability committee. Reports reaching us also has it that the stock market in Greece will not open today as well.
It was reported last Sunday that 40{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} of the ATMs in Greece had run dry. Capital controls have been imposed by the government of Greece, cutting withdrawals to €60 per person per day. The Greek Prime Minister had gone on a televised address where he promised the Greek people that their bank deposits “are safe.”
The English Edition of the daily newspaper the Kathimerini, which is published in Athens and distributed in Greece and Cyprus reported on Monday along with the International New York Times, that the banks in Greece will stray closed until maybe after the referendum in July 5th as summoned by Alexis Tsipras, the Prime Minister of Greece and also approved by a huge majority of officials in government.
Forex Currencies On Fire
The post EURO Gets Smoked, ATMs Run Dry, Is It Time To BUY, BUY, BUY? appeared first on Cutting-Edge FX Technology.
SOURCE: Cutting-Edge FX Technology – Read entire story here.
