MARKET BRIEFING – LONDON OPEN 17.07.2015
Today the German Bundestag will vote to approve the latest Greek bailout deal. The probability that the endorsement of 86 billion euro package will go through. However it is becoming harder to persuade German taxpayers that Greece is the country which is worth helping.
There is a growing opposition even in the Angela Merkel’s own party, which she will need to persuade for the bailout approval. With the European project under threat, Greece exiting the Union could cause a further domino effect.
After the Greek Parliament approved the new bailout terms on Thursday. Finland’s parliament followed the suit yesterday. Several other countries are expected to raise their voice on the subject within the next few days.
Greece is in urge to receive financial aid as due date for the 4.2 billion euro repayment to the European Central Bank is coming on Monday. In addition, the installment in arrears to IMF amounting to about 2 billion euro have to be repaid as soon as possible.
In the meantime, the European Central Bank has decided to raise interim emergency lending to the Greek Banks in order to keep them afloat. The doubts however remain whether the cash-strapped country will be able to fulfill its obligations under the new agreement.
International Monetary fund has also expressed its doubts regarding the subject, saying that unless significant haircuts on the Greek debt will occur, it will be impossible for the country to recover.
The Greek Finance Minister himself has constantly noted that he does not believe in the new bailout deal and signed it because there were no other options. He has consequently lost support within his SYRIZA party as well as of many Greek citizens, who felt betrayed by the minister not fulfilling his election promises and accepting further austerity measures, which some believe will suffocate the fragile Greek economy.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.0995
Target 2: 1.0753
Projected range in ATR’s: 0.0121
Daily control level: 1.1050
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.5722
Target 2: 1.5488
Projected range in ATR’s: 0.0117
Daily control level: 1.5575
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 125.10
Target 2: 123.18
Projected range in ATR’s: 0.9641
Daily control level: 123.00
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9676
Target 2: 0.9476
Projected range in ATR’s: 0.0100
Daily control level: 0.9400
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.2956
Target 2: 1.0105
Projected range in ATR’s: 0.0105
Daily control level: 1.2675
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7492
Target 2: 0.7314
Projected range in ATR’s: 0.0089
Daily control level: 0.7490
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1156.55
Target 2: 1134.32
Projected range in ATR’s: 11.115
Daily control level: 1160.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 58.97
Target 2: 55.11
Projected range in ATR’s: 1.9314
Daily control level: 51.00
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