The dollar was lower across the board and as it currently looks the Greek austerity vote is set to pass. As such the safe-haven currencies yen and the Swiss franc are lower with equities performing well.
The euro is up versus the dollar and in the crosses as this week’s recovery continues. Protesters are clashing with police in the streets of Athens but the main event remains inside the Greek parliament where the vote for the medium-term fiscal strategy will take place. With the euro climbing to its highest level in a week and the FTSE 100 up by 1.50%, markets fully expect the legislation to pass, if only by a narrow margin. The euro looks to move higher on a successful vote but this would by no means leave the euro out of the woods as further risks down the road could provide selling opportunities as the Eurogroup meeting on July 3rd draws near. Both S&P and Fitch remarked today that French debt plan would need a 2nd look before an immediate declaration of a credit event.
Worst case scenario for today; should the legislation be voted down the euro would likely spiral lower towards support at 1.4115. As it stands the EUR/USD is currently testing the 1.4440 resistance level with the next resistance found at the falling resistance line from the May and June highs which comes in today at 1.4550.
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