06.07.2015 - The Greeks refused from the offer of creditors

Currency trading and the euro. The price of euro fell in early trading week in connection with the results of the referendum in Greece, where approximately 61% of the electorate voted against the austerity measures in the country, which are needed to achieve consensus on debt restructuring in the country. This fact will have a negative impact on the euro in the future quotes. Volatility will be increased in the coming days due to a number of important events as the ECB meeting which will approve the parameters of liquidity support for Greek banks. It should be noted that the termination of Greek banks access to the ELA program will lead to the exit of the country from the Eurozone. Today, the course of trading will be affected by the data on the index of investor confidence in the Eurozone (08:30 GMT) and non-manufacturing PMI in the US (14:00 GMT). Our medium-term outlook remains negative.

Currency trading and the British pound. The price of the British pound reduced due to the negative results of the referendum in Greece on the austerity measures in the country. The possible exit of Greece from the euro zone will be negatively displayed on the financial system of the European Union. Today, the Prime Minister David Cameron will hold a meeting on the Greek crisis. The volatility of prices will depend on the statements of European politicians after the meeting on the Greek question tomorrow. We expect a further decline in prices of the British currency, and increased volatility tomorrow after the release of statistics on industrial production in the country.

Currency trading and the Japanese yen. The price of the Japanese yen strengthened today with the results of voting on the austerity measures in Greece, where voters rejected the proposal of creditors on austerity measures in the country. We recall that the yen is traditionally considered as a defensive asset and the demand for the Japanese currency in the period of growing instability. The index of leading economic indicators in Japan totaled 106.2% in May, against 106.4% in April. We expect a strengthening of the yen in the near future, but maintain a medium-term negative outlook.

Currency trading and the Australian dollar. The price of the Australian dollar continues to decline after the publication of weak data on inflation from the University of Melbourne, according to which the consumer price index fell to 0.1% in June, compared to the previous figure of 0.3%. This fact stimulates the Reserve Bank of Australia's monetary policy easing. Tomorrow, will be released the RBA statement, which can lead to increased investor’s activity. Our medium-term outlook remains negative and we recommend holding short positions on the Australian currency.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to decline against the weakening of the Australian currency. Currently quotes are moving within a sustainable downward trend, and according to our estimates will continue to decline. Waiting for easing monetary policy in the country and low export prices are the main negative factors which put pressure on quotations of the New Zealand currency. We maintain a medium-term negative outlook on the local currency of New Zealand.

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