Daily Market Analysis – 01st July, 2015
By FxGrow Research & Analysis Team
Greece defaults on $1.7 billion IMF payment
Greece has defaulted on its payment to the IMF on June 30 and became the first developed nation to do so. Greece is now into a deeper recession as its bailout program has expired and now it is cut off from the access to IMF resources. International Monetary Fund in an organization that helps the world economy remains stable.
"I confirm that the about EUR 1.5 billion due by Greece to the IMF June 30 has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared" - Director of Communications, IMF.
The ECB's policymaking governing council was to meet in Frankfurt to decide whether to maintain, increase or curtail emergency lending that is keeping Greek banks afloat despite a wave of deposit withdrawals and the state's default. - Reuters.
"Greece was fully committed to service its external debt in a manner that secures the viability of the Greek economy, growth and social cohesion" - Greek Finance Minister Yanis Varoufakis.
Greece has received nearly 240 billion euros in two bailouts from the European Union and IMF since the start of the program in 2010.
"What would happen if Greece came out of the euro? There would be a negative message that euro membership is reversible" - Spanish Prime Minister Mariano Rajoy.
"Before the planned referendum is carried out, we will not negotiate over anything new" - German Chancellor Angela Merkel.
The risks of a default to the IMF forced European Central Bank to limit its emergency loans to Greek banks and Greece’s government was forced to institute capital controls in order to prevent mass exodus of cash out of the country.
"I think Mr. Tsipras screwed up the negotiations, frankly. Because he believed that Europe needs Greece as much as Greece needs Europe, and that is sadly not the case. So now I believe he's in a state of panic because the banks have closed, people are complaining, they were queuing for hours over the weekend to get their cash out" - Miranda Xafa, Centre for International Governance Innovation.
Crude Oil is trading lower at $58.89 on uncertainty about the financial crisis in Greece.
Gold is trading lower in the Europe at 1171.60, while Silver is weak 15.57
01st July 2015 – 09:09hrs GMT
For more in depth Research & Analysis please visit FxGrow.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.