6 Jul 2015
Greek referendum aftermath - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that financial markets have struggled once again with the increasing risk of a Grexit, after the Greek referendum ended with the "no" victory.
Key Quotes:
"The initial demand for safe-havens' yen and dollar, was partially reverted during the European morning, on hopes Athens will have some extra leverage in its negotiations with the Troika."
"However, the unexpected resignation of Finance Minister Yanis Varoufakis, and news that the "new" proposal from Tsipras is pretty much what Junker offered last June, put the market back in risk-off mode. In the meantime, chances of a sooner deal are quite unlikely, and without new funding, the Greek banks may have to increase their capital controls."
"Also, the ECB decided to maintain its emergency liquidity assistance unchanged at June 26th level. The greenback lost ground mid American session, as the Markit non-manufacturing PMI showed the slowest rise in the US service sector for five months in June, printing 54.8."
Key Quotes:
"The initial demand for safe-havens' yen and dollar, was partially reverted during the European morning, on hopes Athens will have some extra leverage in its negotiations with the Troika."
"However, the unexpected resignation of Finance Minister Yanis Varoufakis, and news that the "new" proposal from Tsipras is pretty much what Junker offered last June, put the market back in risk-off mode. In the meantime, chances of a sooner deal are quite unlikely, and without new funding, the Greek banks may have to increase their capital controls."
"Also, the ECB decided to maintain its emergency liquidity assistance unchanged at June 26th level. The greenback lost ground mid American session, as the Markit non-manufacturing PMI showed the slowest rise in the US service sector for five months in June, printing 54.8."