Euro Plunges as Greece Rejects EU Debt Deal at Referendum
- Euro Plunges as Greece Rejects EU Debt Deal at Referendum
- Yen Higher, Aussie and NZ Dollars Down Amid Risk Aversion
- Follow the Latest Greek News via the Real Time News Feed
The Euro is set to open down close to 0.9 percent on average against its leading counterparts after Greece voted against a deal swapping reforms for bailout funding offered by the country’s creditors at a referendum Sunday. With over 85 percent of votes accounted for, 61.5 percent of respondents opted to say “no”, supporting the position of Prime Minister Alexis Tsipras, while 38.5 percent responded “yes” to the EU-backed plan.
The referendum’s outcome appears to be feeding risk aversion across the financial markets. The sentiment-linked Australian and New Zealand Dollars are following the Euro downward while the safety-geared Japanese Yen is trading broadly higher. Stock futures indicate the dour mood is likely to carry over onto Asian bourses. Contracts tracking Japan’s benchmark Nikkei 225 index are pointing down 0.4 percent ahead of the opening bell.
While the “no” vote does not necessarily equate to a Greek exit from the Eurozone, it does seem to make such a scenario more likely. European Council President Donald Tusk announced an EU summit to be held at 16:00 GMT on Tuesday. Meanwhile, European Commission President Jean-Claude Juncker is set to hold a conference call with Mr. Tusk as well as Eurogroup chief Jeroen Dijsselbloem and ECB President Mario Draghi on Monday.
Learn More Here: What to Expect From the Greek Referendum
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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