Home Fundamental Comment EURCHF drops as IMF quits Greece-creditors talks

EURCHF drops as IMF quits Greece-creditors talks

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EURCHF drops as IMF quits Greece-creditors talksThe euro dropped for a second straight session against the Swiss franc on Friday on renewed worries from Greece after the IMF withdrew from negotiations with the Hellenic country’s creditors.

The International Monetary Fund team had quitted talks in Brussels after they failed to reach a compromise deal with the Greek government concerning labor reforms.

In addition, European officials have accused the Greek government of gambling and mentioned the time for compromise deal is over.

Majority of Germans (51%) prefer to see Greece out of the eurozone, while 70% think Europe should not provide more concessions in the current bailout talks, a new polling from German broadcaster ZDF showed.

The worries from Greece have sparked concerns in markets as Athens would default on a 1.6 billion euro debt payment due at the end of this month, and would eventually exit the euro area.

Some investors opted to hold the Swiss franc as a safe haven at the expense of risky assets, thereby pushing the EURCHF lower.

The 4-hour chart shows the drop in the pair to a low of 1.0448, yet it found some support from the Bollinger bands lower line.

While the Stochastic Oscillator signals the pair is oversold, it still gives no sign of a turnaround.

Key support for the pair is located at 1.0440 while key resistance is found at 1.0487.

EURCHF fxcomment June 12

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Ahmed Mamdouh Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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