Euro dollar began the week with an early Sunday gap to 1.10. Liquidity is extremely thin as only New Zealand is in play. Trading conditions will improve when Sydney and later Tokyo join the game.
The common currency is falling on the very dramatic news from Greece over the weekend.
Update: As Australia joins in, euro/dollar the new low is already 1.0973. Here are the big levels to watch.
Negotiations between the debt stricken country and its creditors broke down on Friday and Tsipras announced a referendum. The Eurogroup rejected the short bailout extension request.
Today, the ECB did not raise the ELA cap, and as Greeks are withdrawing cash quite massively, they are running out of money.
So, Greece has announced week long capital controls.
Banks will remain shut for a week, and the Athens stock exchange is expected to follow suit. Lines to withdraw cash from ATMs are described as “unendingâ€.
However, things might change quickly. The US is worried about the situation and has called Germany to accept Greek debt restructuring.
EURUSD dipped below 1.10 in the first move but trades just above this level. It us a gap of around 150 pips.
Greek crisis – all the updates in one place
Here is how it looks on the chart:
— more to come —
