13 Jul 2015
EUR/USD drops below 1.1000
FXStreet (Córdoba) - EUR/USD came under renewed pressure during the American afternoon and printed fresh lows sub 1.1000 as the shared currency remains under pressure despite progress in Greek debt negotiations.
The dollar is among the best performers underpinned by higher Treasury yields while the euro failed to capitalize Greek deal, keeping EUR/USD upside capped by 1.1196. The pair has lost more than 200 pips over the last hours and briefly dropped below 1.1000 to hit a low 1.0995 in recent dealings. At time of writing, EUR/USD is trading at 1.1003, down 1.30% on the day.
Greek deal, what now?
Greek Parliament will have to approve new bailout programme on Wednesday.
Assuming that the Greek parliament approves the legislation, creditors will then begin to consider the details of a third bailout package. The Eurogroup will hold a conference call on Thursday to discuss bridge financing for Greece and the new 3-year program.
Subsequently, parliamentary approval may be needed in some Eurozone countries.
The European Central Bank will reconsider ELA ceiling on Thursday after the vote. An increase of the ELA cap (which totals €89 billion) could provide liquidity for Greek banks to reopen after 2 weeks closed.
The dollar is among the best performers underpinned by higher Treasury yields while the euro failed to capitalize Greek deal, keeping EUR/USD upside capped by 1.1196. The pair has lost more than 200 pips over the last hours and briefly dropped below 1.1000 to hit a low 1.0995 in recent dealings. At time of writing, EUR/USD is trading at 1.1003, down 1.30% on the day.
Greek deal, what now?
Greek Parliament will have to approve new bailout programme on Wednesday.
Assuming that the Greek parliament approves the legislation, creditors will then begin to consider the details of a third bailout package. The Eurogroup will hold a conference call on Thursday to discuss bridge financing for Greece and the new 3-year program.
Subsequently, parliamentary approval may be needed in some Eurozone countries.
The European Central Bank will reconsider ELA ceiling on Thursday after the vote. An increase of the ELA cap (which totals €89 billion) could provide liquidity for Greek banks to reopen after 2 weeks closed.