Traders prepare for Greek default
Asian shares were near 5-month lows on Tuesday as the situation with Greece affected the market’s risk sentiment. S&P cut Greece’s sovereign debt rating by one notch to CCC-, saying that the probability of it leaving the euro area equals to 50%. Chinese stocks fell by more than 4.5% despite the People’s Bank of China easing monetary policy over the weekend.
EUR/USD slid from 1.1240 to 1.1170. The euro declined after rising on Monday as traders got ready for Greek default on a repayment to the International Monetary Fund later in the day. EUR/CHF rose above 1.0400 as the Swiss National Bank intervened to limit the franc’s strengthening versus the single currency.
USD/JPY is trading on the downside in the 122.70/20 area as the yen is in demand as a safe haven currency.