Euro Suffered from Greece's Turmoil but Continues to Show Stability

Euro has weakened since the unexpected referendum announcement by Greece Prime Minister Alexis Tsipras. After the Greek vote, stocks and other currencies continue to suffer the effects from the turmoil but the damage remains to be muted at the moment.

The initial effect of the Greek referendum against bailout offers is a weak euro throughout the week. The shared currency is showing unexpected stability over the recent Greek vote turnout but analysts predicts it to experience further fall in the coming days. Market volatility is also expected according to expert watchers. Meanwhile, there are possible new negotiations but major players believe that will go through rigorous considerations.

German leader Angle Merkel says the "no" vote in Athens has taken its toll on the negotiation with creditors. Another political personality from Merkel's camp says it's difficult to imagine lending more billions to Greece after its people and Prime Minister rejected budget cuts to make up for its debts. Reports say that a joint response by French President Hollande and Merkel will be convened on Monday in Paris. Most German officials have voiced out concerns over Greece's actions and its effects in the euro citing ejection as one of the possible solutions.  Merkel's has previously expressed her stand to keep Greece in the eurozone and it's still uncertain if her opinion is unchanged. Despite the turmoil in Greece that affects the world market, expert says that the impact is more subtle than expected.  

Stocks and currencies are down worldwide with the exception of the Chinese yen since the announcement of Greece's referendum. European stocks experience its lowest rate of the year while US equities had similar effects since March after the unexpected referendum notice.  Although the crisis has affected most of the market, its volatility remains to show more stability than expected. Chief investment strategist Bruce Bittles says that the subtle effects are partly due to the world's expectation of Greece's plight five years earlier.   

Greece's problems have inevitably affected the euro along with its neighboring countries in the EU. However, the country's weight in the shared currency and its debt concentration majorly in Germany have contributed to its low impact effect in the market at least at the moment.