Euro breaks $1.11 as Syriza wins Greek elections

The euro fell below $1.11 against the dollar on Monday after anti-austerity Syriza party won the general elections in Greece on Sunday.

EUR/USD fell by 0.10% to 1.1220 after recording a fresh 11-year low of 1.1097. The EUR/JPY pair dropped to 130.16 ,  the lowest since 11 years.

According to the final results, Alexis Tsipras-led Syriza got 36.4% of the vote (149 seats out of 300 in the parliament), while the conservative New Democracy party of outgoing Prime Minister Antonis Samaras got 27.8%.

Tsipras will meet with the leader of the right-wing group on Monday to guarantee the two seats anti-austerity party need to secure a majority in the Parliament, and form a new coalition government.

Forming an anti-austerity coalition government will increase the risk of facing government and international lenders, and discussing new conditions for the bailout programs or even reduce Greek debt values, and this in turn puts Greece at risk again of leaving the euro zone.

The negative pressure will increase on the euro and will push it to new lows if Syriza secured the majority to form a new government with the independent right party.

The EUR/USD is expected to test key support levels at 1.10 —if broken  will send the pair towards 1.00 on the medium term.