EUR/USD as continue to witness a bearish trend on the row for seven days now. It currently at 1.0928
probably the lowest since Apr-28 and on route sliding below the 50-day moving average, presently at 1.0960. The bearish trend reflects both a degree of euro underperformance (EUR-JPY is at three-week lows, EUR-GBP at 10-week lows)and dollar outperformance (USD-JPY is at 10-week highs, USD-CAD at a six-week peak). The dollar has been notably perkier in the wake of an unexpected rise in U.S. April core CPI, with Fed chair Yellen subsequently saying that a rate hike "this year" would be appropriate if the economy continues to improve. USD-JPY ground out a new 10-week peak at 121.89 during Tokyo trade, although good selling interest from exporters and a decline in EUR-JPY to three-week lows curtailed upside momentum. Sterling has been mixed, at 10-week lows against the underperforming euro while making two-week lows against the dollar.
Much further drifting of the fall was as a result that EUR/USD was under pressure on 26/05/2015 as fears grew about Greece’s ability to pay its debt duties. Eyebrows were raised over the week-end after Greek Interior Minister Nikos Voutsis said Sunday that the government is unable to refund the debt its owes International Monetary Fund (IMF) next month unless Euro Zone Finance Ministers and international creditors agree to rescue funding.The next payments due June 5 and June 19 call for Greece to repay 1.6 billion Euros ($1.76 billion) to the IMF.
A Greek government spokesman tried to make clear Voutsis’ statement when he said on Monday that the country has the responsibility to repay its obligations both internally and to its international creditors, and that the government aims to have a deal by the beginning of June. This may sound like an optimistic statement, but the sell-off in the market suggests investors may be preparing for the worst.
