Weekly overview (May 18 – 22, 2015)
According to Greece’s Minister of Interior Nikos Voutsis, the country won’t be able to pay its upcoming payment to the International Monetary Fund next month. In his statement on Sunday,Voutsis underlined that without a deal with its creditors, Greece is likely to become insolvent.
The growing fear of the country’s exit from the Eurozone and the positive data from the USA lead to sales of the most traded currency pair – EUR/USD. During the past 5 days it’s quote fell down with more than 440 pips, reaching a level of 1.008 on Friday. GBP/USD dropped by a little over 250 pips, ending the trading week at 1.5475, and AUD/USD lost more than 220 pips, closing at 0.7816. Another currency pair, USD/JPY, rose by exactly 221 pips.
Throughout the week Europe’s capital markets were highly volatile. The German index EUGERMANY30 appreciated by 3.22%, reaching 11,835 points, and the French EUFRANCE40 and the Spanish EUSPAIN35 added to their values 2.74% and 2.08% respectively.
Precious metals prices were in the red. Gold depreciated by 1.61%, and closed at 1205 USD per ounce. Silver, on the other hand, reached 17.06 USD per ounce, meaning that it lost 2.59% of its financial worth.
We expect that just like last week, this week investors and traders will be actively following the situation in Greece, as well as the development of the negotiations between Tsipras and Greece’s international creditors.
Together with that, our attention will also fall on an array of economical data: what stands out in DF Markets’ economical calendar, are Bank of Canada’s interest rate decision on Wednesday, and the forecasts for Great Britain’s GDPs.