MARKET BRIEFING – LONDON OPEN 25.06.2015
The hope and optimism that flooded through the markets over the likelihood that a resolution to the Greek debt crisis has faded away. The mood has changed as the reality that the Greek Government and the creditors are not even on the same book let alone the same page.
Meetings late into the night between the European Commission, European Central Bank and the Greek Government did not lead as expected to a breakthrough.
The collapse in the talks was triggered by the International Monetary Fund. The IMF has questioned the ability of the Greek Government to increase revenues through the imposition of higher taxes on the wealthy and Businesses.
Prior Greek Governments had claimed that by targeting the enormous Greek black economy that they would be able to increase revenues and reduce the deficit. However attempts at reforming tax collection in Greece have so far failed. Therefore the IMF felt that the Greek offer to increase tax revenues could not guarantee the necessary outcome.
A more balanced plan that brought the Greek pension system in line with rest of Europe and a concerted effort to trim the public sector is needed. However the SYRIZA administration decided to stick to its red lines which are a product of its ideological stance and refused to budge on reforming these two burdensome sectors of the Greek economy.
The preference in the Greek Prime Minister Alexis Tsipras words was to place the burden of further austerity on those groups which had suffered the least during the shock of the this long drawn out crisis. I am still not sure how adding an extra burden on businesses will encourage growth and employment in the Greek economy.
As the June 30 deadline draws ever closer the flurry of meetings and activity is increasing with Alexis Tsipras is due meet the creditors in the Morning. The deluge of news has of course added volatility to the markets. These current market conditions should continue up to the end of month deadline.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1332
Target 2: 1.1078
Projected range in ATR’s: 0.0127
Daily control level: 1.1235
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5832
Target 2: 1.5582
Projected range in ATR’s: 0.0125
Daily control level: 1.5800
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 124.80
Target 2: 122.88
Projected range in ATR’s: 0.96
Daily control level: 124.35
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9448
Target 2: 0.9222
Projected range in ATR’s: 0.0113
Daily control level: 0.9230
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.2482
Target 2: 1.2286
Projected range in ATR’s: 0.0098
Daily control level: 1.2275
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7791
Target 2: 0.7609
Projected range in ATR’s: 0.0091
Daily control level: 0.7770
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1187.27
Target 2: 1162.75
Projected range in ATR’s: 12.26
Daily control level: 1180.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 61.82
Target 2: 58.62
Projected range in ATR’s: 1.60
Daily control level: 59.00
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