Euro Gaps Lower as Greek Negotiations Continue into the Night

Talking Points:

• The Euro gapped -0.5 percent versus the US Dollar, -1.0 percent versus the Japanese Yen
• Prime Minister Alexis Tsipras given 3 days to push new austerity measures or risk “Grexit”
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On Sunday, talks between Greece and its creditors ended in a stalemate as both sides could not agree on major issues. The Euro gapped more than -0.5 percent versus its US counterpart, and -1.0 percent versus the Japanese Yen in morning trade. Greek Prime Minister Alexis Tsipras was given 3 days to deliver economic reforms in order to receive at least 74 billion euros in aid. According to Finnish Finance Minister Alexander Stubb, “Greece may be suspended from the currency union should Tsipras miss the deadline.” The unsuccessful negotiations likely triggered risk aversion on the safety-linked Japanese Yen, causing the EURJPY to gap more than 1.0 percent lower on market open.