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What is forecast about euro? Prospects for EUR/USD
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Unexpected results in the Greek referendum were reflected in the EUR/USD gap after today's opening bell. Until the last moment, experts had been sure that Greeks would accept the creditors' terms.
However, the results of the referendum showed that people who got tired of austerity decided to follow recommendation produced by Greece's Prime Minister Alexis Tsipras who had hailed the rejection of the creditor's terms. The final result in the referendum was 61.3% no. Now, the speculation about coming full-scale default in Greece has been resumed on the market together with mounting possibility of Grexit.
On the other hand, Tsipras who proved himself as a strong politician intends to meet all the obligations and is currently getting ready for a new meeting with the creditors. Thus, market participants considered resignation of Yanis Varufacis to be a good attempt to make a compromise. Trojka's response is unknown yet, but the euro has corrected amid this information.



Comment of A. Davydov:
The final No result in the Greek referendum pushed the euro below the level of 1.1000.
However, there is a perception that the present moment is the moment when Greece's creditors can make a concession in their terms. This scenario favors the single European currency, which has already recovered part of its losses. That can push the EUR/USD pair to the level of 1.1150.
The US statistics in its turn can hinder strengthening in the euro. Thus, the EUR/USD pair is likely to reverse towards the level at 1.1150 in case the US services PMI comes out in line with analysts' expectations or above them.
End of comment



The US ISM non-manufacturing PMI is due at 4:00 p.m. terminal time today.
US services activity is expected to continue to grow with renewed vigor in June. Analysts forecast the indicator to rise to 56.2 from 55.7 in the previous month.
Besides, the single European currency itself should not be overestimated. Returning to the eurozone, we should take into account that the recent developments in Greece could serve as a precedent for the authorities in other countries of the euro bloc to follow the same scenario facing debt crisis consequences. Thus Italia, Spain, and Portugal are likely to follow this way.

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