Euro hit by the Greek "No" vote
On Monday, the market attention is glued to the euro zone’s internal issues. Probability of the Greek exit from the Eurozone surged after 61% of the Greek voters rejected the austerity measures on the referendum on Sunday. European leaders will hold emergent meetings on Monday and on Tuesday to discuss the new options. Meanwhile, the Greek Finance Minister Yanis Varoufakis stepped down, citing the creditors’ unwillingness to involve him in further negotiations.
Level of uncertainty remains very high. The euro crosses gapped lower on the news, but have recovered some ground in the early trade. EUR/USD opened with a 115 pips bearish gap at 1.0990 before recovering to 1.1090. Traders should be monitoring developments in the euro zone with plenty of news to come.
Meanwhile in China, stock market paused its decline due to the aggressive governmental intervention. The People’s Bank of China committed to support the brokerage houses with liquidity. As a result, China’s 21 largest brokerages announced they are buying stocks on the market to prevent a new market drop.