FX & CFD trading involves significant risk
The euro rose substantially against the US dollar, closing today's gap and updating a maximum of 24 of June. First, the markets reacted sharply to the events of the weekend referendum in Greece capital controls and the closing of the banks. But then the market quickly stabilized and started to recover. In the referendum, the Greeks will have to make a decision: whether to agree to the terms on which lenders offer financial assistance. Survey results suggest that people can say "yes", and such an outcome could topple the government. At the same time, "no" does not necessarily entail the exit of Greece from the eurozone. The Greek government actually says that it is ready to give up running the country, if not the other alternatives will be offered claims of creditors. Meanwhile, tomorrow, Greece had to pay part of the debt to the IMF, but recently a representative of the Greek government announced that the country does not pay the installment on Tuesday. Experts point out, even if the rating agencies do not take some action, European lenders may well respond to such a move. According to traders, sharp turn euros caused by such factors: 1) the hope that an agreement is still possible, or the country will be extended for the period of payment of the debt before the referendum. 2) the purchase of euros from the SNB 3) closing of transactions carry trade in the euro.
The Swiss franc rose against the dollar significantly by upgrading the maximum on June 24 despite the fact that the SNB confirmed that makes intervention. As previously reported, the Central Bank of Switzerland on Monday night to intervene in the currency market to stabilize the franc against the backdrop of growing concerns about the possibility of a Greek exit from the eurozone. Chairman of the Governing Board of the Swiss National Bank Thomas Jordan said the bank intervened in the development of the situation on the market in order to restore the stability of the franc. "We have been active in the foreign exchange market to stabilize the situation", - he said, speaking in Bern. "We are in a very difficult situation and are closely watching the development of events," - he said, referring to the financial problems of Greece and the pressure they exert on the Swiss currency. Jordan is not outlined the scale of the intervention carried out by the Swiss National Bank and did not answer the question of whether this intervention is the first after 15 January, when the central bank reversed the lower limit for the euro / franc.
The British pound rose against the dollar mildly, updating a maximum of 25 of June, but then lost some positions. A little influenced by data on lending in the UK. Mortgage approval unexpectedly fell in May, data showed on Monday, the Bank of England, in contrast with other recent signs that activity in the housing market has intensified in recent months. Bank of England data also showed that consumer credit growth slowed slightly in May, but it is still strong. On a three-month annual basis, consumer loans grew at the fastest pace in nearly 10 years that emphasizes the dependence of the UK economic recovery from household expenditure. Mortgage permission to purchase homes totaled 64,434 in May, compared with 67,580 in April. Analysts predicted that 68,700 mortgage approvals were made in May. Net mortgage lending, which follows approvals increased by 2.098 billion. Pounds in May, noting the largest increase since November, said the Bank of England. This is slightly more than the forecast 2.05 billion pounds. The Bank of England said that consumer loans rose by 1.0 billion pounds in May, compared with 1.176 billion pounds in April. Economists had forecast an increase of 1.1 billion pounds. Despite the slowdown in May, consumer loans for three months on an annualized basis increased by 8.5 per cent, the highest rate since August 2005.