FX round-up: Euro weakens after Tsipras asks Greeks to vote 'no'
The single currency weakened on Wednesday after Greek prime minister Alexis Tsipras asked his countrymen to vote 'no' in the 5 July referendum on approving the bailout terms proposed by the country´s international creditors.
Euro/dollar retreated 0.79% to 1.1045 as traders seemingly came around to the view the European Central Bank would step up its programme of quantitative easing, if necessary, to offset contagion risks.
Cable was also to be seen off by 0.5% to 1.5611 by the end of trading.
The UK´s direct financial exposure to Greece is “minimal” Bank of England Governor Mark Carney said in a briefing following the release of the Bank´s Financial Stability report.
However: "In contrast [to direct UK risk from Greece], our economic and financial exposure to the euro area is considerable. Fortunately, the euro-area economy is stronger than a few years ago.
"UK authorities will continue to monitor the situation thoroughly and will take any action necessary to safeguard UK financial stability."
Dollar/yen on the other hand bounced back by 0.68% to reach 123.23.
Stateside, the latest ISM manufacturing sector purchasing managers´ index edged past analysts´ forecasts, rising to a reading of 53.5 from 52.8 in the month before (consensus: 53.2) - its highest level since January 2015.