The euro continues to rise as the vote on the next Greek austerity program nears with market participants expecting a positive outcome. This may set up an opportunity to “buy the rumor, sell the fact,” as the release of the next tranche from Greece’s first bailout simply kicks the can down the road. A solution to the underlying burden of Greek debt remains to be found.
EUR – Greek Austerity Vote
The debate rages in the Greek parliament while rioters run amok in the streets of Athens leading up to today’s austerity vote. The euro has been bid with a majority of expectations for a successful passage of the plan which would allow Greece to receive the final tranche from its first bailout. But the weight of the debt burden will not be lifted from Greece but only pushed further into the future. This may present a selling opportunity in the present euro rally. Last week’s high at 1.4440 is the first resistance followed by the early June high at 1.4700. Support is found at yesterday’s low at 1.4240 and the rising support line from the mid-May low at 1.4115.
USD – Pending Home Sales m/m – 14:00 GMT
Expectations: 2.4%. Previous: -11.6%.
Forecasts are for a rebound from the previous month’s sharp downturn in pending home sales though this data release will largely be put on the back burner to the events taking place in Greece.
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