Syriza ‘s leader Alexis Tsipras won the elections in Greece

The Syriza party won 36.4% of the votes, meaning 149 seats in the 300-seat Parliament while the incumbent Prime Minister Antonis Samaras’s democratic party took 27.8% of the votes (76 seats). What does this victory mean for Greece? The renegotiation of the national debts. What does this victory mean for the Euro Zone? More political and financial instability. The EURUSD currency pair lost ground down to the 1.1097 level after the market opened with a negative gap which is currently being covered up to 1.1183. The Euro depreciated against all its counterparts, while the European indexes lost points as well.

Last week on Friday Markit Economics released a series of PMI indicators which together with the new acquisition of the ECB (QE) pushed the EURUSD in another episode of depreciation till the 1.1113 low. Thus, the European economy has proven not to make progress by publishing the French manufacturing PMI to 49.5 points and the services PMI down to 49.5 points, German manufacturing PMI down to 51 points and the services PMI to 52.7 points while for the entire Euro zone the manufacturing PMI was reported at 51 points and the services PMI was reported at 52.3 points.

The string of negative news could take a break now, allowing a breather to the single European currency, which is giving way in the spotlight to the American dollar. On the 28^th of January, the Federal Reserve is expected to decide the funds rate while next week the NFP report will be published. Market participants are still waiting for the interest rate increase announcement in the United States of America.

The Japanese yen appreciated as investors bought it as a safe haven asset while gold is still under the 1300 dollars per ounce resistance. It looks like the precious metal refuses to rise in front of the European financial and political turbulences. Both the Australian and New Zeeland dollar depreciated as a reaction to the Syriza’s victory. These two economies have their currencies strongly depreciating because of the fall in the prices of commodities and oil, which leads the market to the presumptions of an interest rate cut to be coming soon.

The Swiss franc also gained extra points, but it is interesting to observe how the 0.9789-0.8790 support zone is holding up for the EURCHF while for the USDCHF the 0.8833 resistance area is working well. SNB’s intervention may activate behind these levels.

The Saudi Arabia’s new king maintaining its production policy and the rising stockpiles in the United States are elements which cause the continuation of the descending trend for oil. Oil WTI opened the trading session with a negative gap down to the 44.80 dollars support level while Brent is struggling to resist to the 47.80 support level. The current levels look very fragile to hang on for the rest of the day.