Euro below 1.10 handle

Monday, May 25 2015

With Eurozone banks being close in observance of Whit Monday and without major data releases markets are focused on Grexit as Greece is running out of cash and has to come to a deal with the IMF and EU to secure the final tranche of its bailout from the institutions. "The four instalments for the IMF in June are €1.6bn, this money will not be given and is not there to be given," Nikos Voutsis told Greek TV. The Greek interior minister Nikos Voutsis is "of the far left" in a hard left-wing Syriza party but should not be disregarded as on the fringe, or irrelevant, within the government. So his comments that Greece cannot and will not pay the IMF €1.6bn next month should not be fully discounted.

Yanis Varoufakis said Greece had worked hard to meet its end of the deal with its lenders, and that now it was up to the international institutions to reciprocate. "Greece has made enormous strides at reaching a deal," he told the Andrew Marr Show."It is now up to institutions to do their bit. We have met them three-quarters of the way, they need to meet us one-quarter of the way. €1.6bn, this money will not be given and is not there to be given," Nikos Voutsis told Greek TV. Greece has to come to a deal with the IMF and EU to secure the final tranche of its bailout from the institutions.

Euro fell at the opening of Monday's session, but managed to rebound, only to fell again after testing 1.10 handle and is currently being traded few points above 1.0970 level. Pair is likely to find support around 1.0950 handle and resistance above 1.1020 area. We cannot expect any larger movements in the rest of the session with US banks being closed in observance of Memorial Day.

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