MARKET BRIEFING – LONDON OPEN 22.07.2015
Yesterday Greece’s sovereign credit rating was lifted by two notches as the agreement with creditors was reached and overdue debt to International Monetary Fund was settled. Standard & Poor’s rating agency has raised the Greece’s rating from CCC- to CCC+. The agency also revised country’s outlook from negative to stable.
The rating however still leaves the country in the junk status with the only optimism that it goes in the right direction.
The emergency bridging loan of 7 billion euro Greece has received last week with subsequent settling of its debt obligations was one of the reasons for the rating increase. In addition, a promise of the new three-year bailout deal has convinced the S&P that “its default on its stock of commercial debt is no longer inevitable” within the next 12 months.
According to the agency the possibility of the Greece exiting Eurozone has now fallen to below 50%, with the risks high still.
On Monday the Greek banks have begun operations after being closed for three weeks. The same day the country met 4.2 billion Euro deadline to the European Central Bank as well as settled 2 billion euro to International Monetary Fund. The payment of 700 million euro interest was also settled with its creditors.
In the return for the bailout aid, Greece has agreed to implement further austerity measures among which are tax increases and spending reduction. In addition, a massive sale of the state assets to the private investors should be put into effect.
The new 86 billion euro agreement is still awaiting the approval by some of the European Members parliaments. It is expected that negotiations for the new program will be concluded within a month.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.0937
Target 2: 1.0711
Projected range in ATR’s: 0.0113
Daily control level: 1.1050
GBPUSD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.5671
Target 2: 1.5445
Projected range in ATR’s: 0.0113
Daily control level: 1.5575
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 125.04
Target 2: 123.26
Projected range in ATR’s: 0.8939
Daily control level: 123.00
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9734
Target 2: 0.9556
Projected range in ATR’s: 0.0089
Daily control level: 0.9400
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3069
Target 2: 1.2875
Projected range in ATR’s: 0.0097
Daily control level: 1.2675
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7457
Target 2: 0.7281
Projected range in ATR’s: 0.0088
Daily control level: 0.7490
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1113.36
Target 2: 1083.74
Projected range in ATR’s: 14.81
Daily control level: 1160.00
OIL
The intraday technical outlook
Trend 1 hour: Range
Target 1: 58.40
Target 2: 54.76
Projected range in ATR’s: 1.8586
Daily control level: 51.00
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