10 Jul 2015
EUR/GBP awaits outcome of Greek Parliament vote and EU summit
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7205 with a high of 0.7224 and a low of 0.7166.
EUR/GBP is settling around the 0.72 handle while we await the outcomes of the progress that is currently underway in respect to Greece's new proposals and the Greek Parliament vote.
EUR/GBP price action
EUR/GBP has rallied up to the 0.72 handle this week scoring 0.7223 the high earlier. Supply there took the cross down to 0.7186 and yesterday's resistance on the minor recovery from same aforementioned highs.
EUR/GBP fundamentals
EUR/GBP bulls are taking pips in the unit on the back of positive sentiment in that Greece finally submitted their proposals as promised and on time. "“We have heard little by way of an official response from creditors, but given the movement of the proposals towards the creditors’ plan there looks to be a decent chance this is accepted as basis to work up a more detailed program plan and progress the ESM bailout application," explained the FX team at Investec.
The FT explained that the Greek government has vowed to press ahead implementing several reforms from early next week even before a final bail-out agreement can be reached in an attempt to rebuild trust with its creditors, as acknowledged by Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ who explained, “The key meetings at the weekend are a Eurogroup discussion Saturday and the make or break EU Summit Sunday. Ahead of these however the Greeks are holding a long parliamentary session today and a vote on immediate actions that need to be carried forward before any cash can be disbursed. Although the head of Tsipras’s junior collation ally did not add his signature to the proposal, nor did the energy minister, it is expected that these proposals will pass in the Greek parliament today, helped by opposition backing, edging Greece closer towards a position where it maintains its position within the single currency.”
However, Morgan Stanley are staying with their bearish outlook, regardless of the Greek outcome. “Should Greece sign a deal, a short-term EUR rebound should be followed by EUR weakness as investors are likely to move back into EUR-funded carry positions".
EUR/GBP technically bullish while above May low
EUR/GBP is holding around the 0.72 level and in bullish territory while dips should may find initial support at 0.7185/55 ahead of the 0.7057 May low, as explained by Karen Jones, chief analyst at Commerzbank.
EUR/GBP is settling around the 0.72 handle while we await the outcomes of the progress that is currently underway in respect to Greece's new proposals and the Greek Parliament vote.
EUR/GBP price action
EUR/GBP has rallied up to the 0.72 handle this week scoring 0.7223 the high earlier. Supply there took the cross down to 0.7186 and yesterday's resistance on the minor recovery from same aforementioned highs.
EUR/GBP fundamentals
EUR/GBP bulls are taking pips in the unit on the back of positive sentiment in that Greece finally submitted their proposals as promised and on time. "“We have heard little by way of an official response from creditors, but given the movement of the proposals towards the creditors’ plan there looks to be a decent chance this is accepted as basis to work up a more detailed program plan and progress the ESM bailout application," explained the FX team at Investec.
The FT explained that the Greek government has vowed to press ahead implementing several reforms from early next week even before a final bail-out agreement can be reached in an attempt to rebuild trust with its creditors, as acknowledged by Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ who explained, “The key meetings at the weekend are a Eurogroup discussion Saturday and the make or break EU Summit Sunday. Ahead of these however the Greeks are holding a long parliamentary session today and a vote on immediate actions that need to be carried forward before any cash can be disbursed. Although the head of Tsipras’s junior collation ally did not add his signature to the proposal, nor did the energy minister, it is expected that these proposals will pass in the Greek parliament today, helped by opposition backing, edging Greece closer towards a position where it maintains its position within the single currency.”
However, Morgan Stanley are staying with their bearish outlook, regardless of the Greek outcome. “Should Greece sign a deal, a short-term EUR rebound should be followed by EUR weakness as investors are likely to move back into EUR-funded carry positions".
EUR/GBP technically bullish while above May low
EUR/GBP is holding around the 0.72 level and in bullish territory while dips should may find initial support at 0.7185/55 ahead of the 0.7057 May low, as explained by Karen Jones, chief analyst at Commerzbank.