EUR/USDThe euro dipped 0.82% to 1.1144 on Tuesday as the drama surrounding the Greek debt crisis continued. An emergency conference call between Greece and its eurozone creditors ended on Tuesday night without a deal. As a result, a €240 stimulus, Greece’s second bailout since 2010, program expired as expected. Earlier, Greece proposed a two-year bailout program under the European Stability Mechanism, the eurozone’s bailout fund. The proposal comes a day after the Greek parliament approved a public referendum on July 5th, which is largely viewed as a proxy on whether its citizens would like to remain in the eurozone. Separately, the IMF on Tuesday confirmed Greece had not made its 1.5 billion euro ($1.7 billion) loan repayment to the fund, making it the first advanced economy to ever be in arrears to the fund.
EUR/USD 4 Hour Chart
GBP/USDThe pound was almost unchanged against the U.S. dollar on Tuesday, after mixed economic reports from the U.K. and as demand for the safe-haven greenback remained supported mid growing concerns over Greece’s debt crisis. The U.K. Office for National Statistics said GDP expanded at a rate of 0.4% in the first quarter, up from a previous estimate of 0.3% and in line with expectations. A separate report showed that the U.K. current account recorded a deficit of £26.5 billion in the first quarter, narrowing from a deficit of £28.9 billion in the fourth quarter, whose figure was revised from a deficit of £25.3 billion. Economists had expected the current account deficit to narrow to £23.8 billion in the first quarter.
GBP/USD 4 Hour Chart
USD/JPYThe dollar remained broadly higher against the Japanese yen on Tuesday, as Greece became the first advanced economy to miss a payment on IMF debt, joining the historical ranks of deadbeats from Cuba to Zimbabwe. The International Monetary Fund’s board has been informed that Greece is now in arrears.
USD/JPY 4 Hour Chart