In a startling turn of events, Syriza scored a major victory overnight as the vote tally showed over 61% of Greek voters choosing “no” at the referendum, throwing Europe into disarray as leaders scramble to ring fence economies from contagion. In another stunning move, firebrand Greek Finance Minister Yanis Varoufakis resigned from his ministerial post in an effort to help Tsipras head back to the negotiating table with creditors. The overwhelming vote against austerity and further spending cuts might help Greece finally alleviate the lingering debt problem through haircuts and debt relief. This is a great victory, but throws the situation into chaos with creditors not sure how to respond. Meetings will be conducted throughout today’s market session as policymakers discuss options including parallel currency issuance and further bank financing. The Euro reopened to over 100 pips in losses before recovering overnight, managing to rally back above 1.1000 after experiencing substantial volatility.
Greece Rejects Austerity
Daily Analysis - 06/07/2015