The Forex Week In Review

The main story of the forex week, was the same as last week, and the week before: Greece.
We began the week in the dying hours of negotiations between Greece & the ECB in what transpired to be the longest Euro-Summit on record, as finally a deal was agreed upon mid-morning Monday. The deal was then successfully passed before Greek parliament following scary scenes in Athens as protesters raged against the proposed austerity package. The deal has largely been criticized by market participants as simply kicking the can down the road and imposing measures more of a punitive nature than growth-inducing.

The Forex Week In Review

We began the week with a heavily risk-off tone as the Greek referendum delivered a surprise “No” vote shocking many and causing widespread panic that Greece was about to exit the EuroZone. Compounding this risk-off tone was the crisis in Chinese equity markets which saw dramatic losses once more. To put the icing on the cake we also had the release of the FOMC minutes from their June meeting, so all the ingredients were in place from a strong USD rally.