Global Themes

The Greek people voted “NO” this weekend on the proposed austerity plan by an overwhelming 61%. On the back of this the Greek Finance minister resigned this morning. He was seen as a thorn in the side by the EU in the negotiations. His resignation may change the way negotiations are led going forward. Any new package will have to pass legislation hurdles in many countries, including Germany, which will lengthen the time of uncertainly. The other big story of the day is China. Chinese stocks rose on Monday, as an unprecedented series of support measures unleashed by Beijing brought some relief to a market whose headlong slide over the past three weeks had raised fears about the stability of the world's second-biggest economy. In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.

CAD

USD/CAD made a fresh high this morning of 1.2645. This coupled with WTI’s break of the 55.76-56.00 support area should portend further gains for the USD.

USD

USD futures (DXY) are up .44 percent this morning. They are still stuck in a broad two month trading range.

EUR

EUR/USD initially opened down last night about 100pts .It is trading off the lows , but still down on the day. The areas to watch are the June 29 low of 1.0953 a break of that can see it trade down to the May 27 Low of 1.0818.