Charts to Start the Week as Euro Plays Victim to Greek Drama
- Greece's July 5 referendum means it will miss June 30 payment.
- Measures of EURUSD volatility jump to highest levels since 2011.
- See the June forex seasonality report.
By all accounts, Greece's fate in the Euro-Zone could be decided within the next week. The July 5 referendum vote on the Eurogroup's aid package proposal will more or less signify whether or not Greeks wants to remain part of the monetary union and keep the Euro. Understandably so, the Euro hasn't taken too kindly to this development at the open of the week.
However, one thing the recent twists in the Greek debt saga have led us to is a timeline for determining the fate of Greece - something seemingly with an unlimited, 'kick the can down the road forever' type of feeling. Accordingly, periphery markets may not be getting hit as hard - and the Euro may be rebounding this morning - as markets are imposing a harsh lesson on Greece, that will deter Italy or Spain from making the same hasty decision to threaten to leave the Euro.
--- Written by Christopher Vecchio, Currency Strategist
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