Forex Flash: EUR/USD undergoes ´buy the rumor, sell the fact´ reaction – Wells Fargo

FXstreet.com (Barcelona) - The EUR/USD has dropped under 1.4400 in the wake of the Greek vote, as Vassili Serebriakov, currency strategist at Wells Fargo Bank, reports an immediate ´buy the rumor, sell the fact´ reaction. “Furthermore, while today’s outcome significantly reduces the risk of a ‘worst-case’ scenario for the euro, we do not expect debt problems Greece or other peripheral Eurozone members to fall off the market’s radar any time soon.”

“In light of today’s initial market reaction, we continue to see asymmetric risks for the euro. The positives of a Greek bailout and a July ECB rate hike are already largely priced in, while the negatives of the ongoing debt crisis and slowing growth momentum could translate into more significant euro downside in the months ahead.”