Closed in NY at $1.2655 with rate marked higher late Sunday as exit polls suggested that the pro-bailout parties in the Greek
election had secured enough seats to form a government. Rate edged on from below $1.2700 to an official open of $1.2720 with follow on demand taking the rate on to highs of $1.2748. Rate drifted off highs as the opening enthusiasm quickly faded, the market seeing the result more as dodging a catastrophe than outright optimism that all the Eurozone problems have gone away. Rate eased, initially meeting support into $1.2700 before extending to a session low of $1.2674. Asian equity markets reacted positively to the news, with gains across the board providing EUR/USD with a risk-on lift that took rate back to $1.2710 ahead of the european open. Market will now await to formation of a Greek government and to see what modifications they will demand to the austerity terms of the bailout. The weekend move has left a technical gap in the charts which, like last Monday’s post Spanish bank bailout gap, will be expected to close.
EasyForexNews Research Team