Talking Points:
• Greece crowded out headlines to start the week after the government called for a referendum July 5
• EURUSD opened to a severe gap and EURJPY's was a record, but both retraced most of their losses
• Meanwhile, risk aversion started to find traction with the S&P 500 leading global equities on retreat
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Greece was a catalyst for both the Euro and risk trends to start the new trading week. However, it seemed the most directly exposed markets (such as the Euro) were not suffering as much as the most stoic of the speculative measures (like the S&P 500). Over the weekend, the Greek government surprised market participants and Eurozone officials by pushing forward a referendum on whether Greece will officially accept 'The Institutions' proposals or reject them. The implications are severe even if the path the situation follows isn't exactly clear. Passing official due dates on an IMF repayment, the official end to the original bailout program and the ECB's review on emergency liquidity support to get to the July 5 referendum will make global investors uneasy. Euro markets will be shaken through the upcoming week, but it is underlying sentiment trends that will truly shoulder the burden. We look at where the bias and opportunities lie as these risks unfold in today's Trading Video.
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