Global macro overview for 21/08/2015:
Yesterday’s news on the resignation of Greek prime minister Alexis Tsipras has slightly changed the further political outlook in the Greek government. The step down justification provided by PM regarded paving the way for snap election next month. Nevertheless, the PM was abandoned by seven of his key officials after accepting the 86 million euro bailout earlier this month. This decision has a drastic consequences as it was perceived as betrayal by former party members. Nevertheless, the Eurogroup president, Jeroen Dijsselbloem, has urged Greece officials not to abandon its commitments to the EU, hoping the new government will support the EU program and reforms.
The PM resignation has not been perceived by the market as bad news and the EUR/USD rate is higher than the yesterday close. The market might have been more occupied by the good numbers from the EU PMI data. Currently, the market is trying to break out even higher above the resistance at the level of 1.1278. The immediate support comes at the level of 1.1215.
The material has been provided by InstaForex Company – www.instaforex.com