• Equity futures and risk markets have sold off heavily after a weekend of turmoil in Europe. While the Greek decision to extend capital controls and plan a referendum have hit markets hard, the terrorist attacks across Europe are also weighing heavily on sentiment.
• The S&P 500 futures gapped heavily at the open and are now trading below the 200 period moving average. The US dollar index is actually down slightly despite the euro’s problems as money flows into the yen.
• The euro is down over 1.25% against the US dollar, while the EUR/JPY is off by over 2%. Greece has imposed capital controls on withdrawals, with a referendum on Greece’s membership of the euro (effective) due on Sunday. Some analysts have pointed out that a ‘Grexit’ still may not be inevitable, but about the only thing we can say with any certainty is that we are entering the final stag of this drama.
• The yen pairs are seeing the biggest movement overall as money flows into the perceived safety of the Japanese currency.
• Gold as investors seek out safe harbors. Coming up today:
• Euro headlines will dominate newsflow throughout the day.
• Also coming up, we have Spanish Flash CPI at 08.00.
• Following this we get UK net lending to individuals.
• US pending home sales follow at 15.00.
Trade Idea:
So where now for the euro? Really it’s anyone’s guess, but there is at least a chance that the referendum may force Greek citizens to side with the euro and therefore the creditor nation proposals. A week of pain may force a ‘status’ quo result in favour of creditors. It may all be part of a very dangerous game from Tsipras – who knows.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Greece on the Brink – Euro Plunges 1%
Morning Report: 07.30 London
• Equity futures and risk markets have sold off heavily after a weekend of turmoil in Europe. While the Greek decision to extend capital controls and plan a referendum have hit markets hard, the terrorist attacks across Europe are also weighing heavily on sentiment.
• The S&P 500 futures gapped heavily at the open and are now trading below the 200 period moving average. The US dollar index is actually down slightly despite the euro’s problems as money flows into the yen.
• The euro is down over 1.25% against the US dollar, while the EUR/JPY is off by over 2%. Greece has imposed capital controls on withdrawals, with a referendum on Greece’s membership of the euro (effective) due on Sunday. Some analysts have pointed out that a ‘Grexit’ still may not be inevitable, but about the only thing we can say with any certainty is that we are entering the final stag of this drama.
• The yen pairs are seeing the biggest movement overall as money flows into the perceived safety of the Japanese currency.
• Gold as investors seek out safe harbors.
Coming up today:
• Euro headlines will dominate newsflow throughout the day.
• Also coming up, we have Spanish Flash CPI at 08.00.
• Following this we get UK net lending to individuals.
• US pending home sales follow at 15.00.
Trade Idea:
So where now for the euro? Really it’s anyone’s guess, but there is at least a chance that the referendum may force Greek citizens to side with the euro and therefore the creditor nation proposals. A week of pain may force a ‘status’ quo result in favour of creditors. It may all be part of a very dangerous game from Tsipras – who knows.
The result is far from certain, but a bet on euro upside is at least worth a small bet. A good way to play this is a ONE TOUCH trade predicting that the EUR/USD will touch 1.1500 at some point in the next 10 days for a potential return of 255%.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
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