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Sharp decline in the euro after the “no” Greek

Dans les rues d'Athènes, le 5 juillet.

The euro limited its decline and climbed above $ 1.10 during early trade in Asia Monday, July 6. The European currency fell to 1.0963 dollars in the wake of the clear rejection of the plan by the Greeks of the creditors of their country in Sunday’s referendum.

Around 8 am in Tokyo (1am in France), the euro bought 1.1025 dollars, against 1.1107 Friday evening. The euro fell as strongly against the Japanese currency, considered a safe haven, to 134.88 yen against 136.31 yen Friday. Similarly, the dollar retreated to 122.30 yen against 122.72 yen late last week. The result of the Greek referendum “has two consequences: it legitimizes the position of the Greek government and he leaves the ball in the camp of Europe” , write ANZ Bank analysts in a research note. “Either Europe assigns or Greece goes bankrupt, your turn Merkel” , they summarize.

ECB decision on Monday

Greek Prime Minister Alexis Tsipras praised Sunday evening the clear victory of “no” and said that his government was ready to resume without delay the negotiations with the creditors. For its part, the European Council President Donald Tusk said Sunday night that he convened a summit of the euro area for Greece Tuesday evening

For market participants, the next test will be the decision of the Governing Council of the European Central Bank Monday on the emergency liquidity ceiling (ELA) granted to Greek banks. “The ECB is likely to leave this question open until the situation becomes clearer in political leaders. In any case, markets are left for an extended period of uncertainty and negotiation “, said Raiko Shareef, strategist exchange Bank of New Zealand .

The Governing Council of the European Central Bank (ECB) is likely to maintain unchanged the emergency liquidity ceiling (ELA) for the Greek banks, sources indicated Sunday with the matter.

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