Global macro overview for 07/07/2015 – EUR/USD after ECB decision
As Greece is very depended on a further creditors’ lending in order not to default, the ECB decision made it even harder for Greece to get the emergency loans from this institution. The Emergency Liquidity Assistance (ELA) provided by the ECB is highly depended on government–linked assets as the current financial situation in Greece has an impact on their banking system. This is why the ECB’s Governing Council agreed to leave the limit on ELA unchanged at 88.6 billion euros ($98 billion), but the change in collateral terms is more strict. Please remember that cash withdrawals are still limitted to 60 euros per day in Greece since last week .
The EUR/USD reaction on that news is very bearish as the important technical support at the level of 1.0953 is currently being tested. Please notice that bears immediately gained more control and pushed the price lower after both weekend gaps had been filled.
The material has been provided by InstaForex Company – www.instaforex.com