Euro/dollar didn’t like the proposal and extends its falls on the Greek rejection. Greece’s PM Alexis Tsipras has summoned an urgent cabinet meeting to discuss the situation as the June 30th deadline looms.
Update: Greece calls referendum on rejected proposals – EUR could go wild on this mess
EUR/USD as made it below the previous lows and has reached 1.1130, below a minor support line and ahead of another. Will we see more drops before the tense weekend?
The proposal reportedly went towards Greece regarding VAT raises and pensions but it lacked a few critical details. Most importantly the limited scope of the deal, only 5 months, would have left a lot of uncertainty. Greece also asked for debt restructuring, which was off the table for the EU.
And contrary to the European Union, the IMF does see a debt cut as necessary. However, they are tougher than the EU on measures that Greece must take. The finance ministers of the euro-zone meet on Saturday at 12:00 GMT (14:00 in Brussels) and it is unclear what they will discuss.
1.1150 is broken at the time of writing, and there is more at 1.1111 a low point in January and 0.90 on USD/EUR. Real support awaits at 1.1050.
Here is how it looks on the chart:
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