EUR/USD rises above 1.1200, turns positive

FXStreet (Córdoba) – Despite uncertainty surrounding Greece and fears of contagion through the Eurozone, the euro has managed not only to erase intraday losses and fill the opening gap but also to post some gains.

With the Swiss National Bank intervening to “stabilize” the franc, the shared currency has managed to recover ground with EUR/USD hitting fresh daily highs above 1.1200. EUR/USD broke above the 100-hour SMA and accelerated toward a peak of 1.1204 before easing slightly. At time of writing, the pair is trading at 1.1180, a few pips above its Friday’s close and 2.0% off daily lows.

Three reasons behind the turnaround in euro

According to Kathy Lien, analyst at BK Asset Management, the turnaround in euro responds mainly to three factors: 1) Hope that a Deal is Still Possible or at least that an extension would be provided to cover referendum period. 2) Swiss National Bank buying euros. 3) Gaps filled on unwind of euro carry trades.

Meanwhile in Greece, banks remain closed unable to face large withdraws after talks between Greek and creditors broke down on Saturday when Tsipras government called a referendum on bailout proposals and Eurogroup rejected an extension of the aid program beyond June 30.

Despite uncertainty surrounding Greece and fears of contagion through the Eurozone, the euro has managed not only to erase intraday losses and fill the opening gap but also to post some gains.


(Market News Provided by FXstreet)