EURUSD has slid dramatically lower since Friday morning, as murmurs of a Greek default have grown louder and risk appetite has vaporized in the market place. German press reports out over the weekend suggested that the German Economics Minister was already looking at contingency plans to protect domestic banks should there be a Greek default, increasing the number of official sources shown to be mulling the scenario which only months ago seemed unthinkable for policymakers. Some had speculated that the Greeks might even announce a default over this past weekend, but that development has not been forthcoming, as Prime Minister Papandreou unveiled fresh property taxes and state wage cuts to help avert default. Adding to a broader lack of confidence, ECB member Jurgen Stark announced his resignation late on Friday, with the reason believed to be a fundamental disagreement over the decision to recommence asset purchases. EURUSD has now slid to lows of 1.3495, and there may be further losses yet to come as the news flow trickles through.
Unsurprisingly, with all the turmoil in Europe there has been a continuation of bearish trading in the Asian stock markets, with the Nikkei currently trading -2.3% on the day and Hang Seng -3.9%. The Shanghai Composite has, for now, been shielded from the losses as the exchange is closed for the Mid Autumn Festival Public Holiday. S&P futures are currently down over 1% already, and expectations are for a lower open across the major European indices. In particular, it will be worth watching how the FTSE 100 reacts to the news that UK banks may have to stump up some GBP7bn in order to comply with the Vickers Plan to separately recapitalize consumer and securities units by 2019.
Today’s data calendar is pretty light so i predict most FX movement to be stimulated by headlines and rumours.
By
M.Zohaib Gadit
Forex Trading Consultant
Unsurprisingly, with all the turmoil in Europe there has been a continuation of bearish trading in the Asian stock markets, with the Nikkei currently trading -2.3% on the day and Hang Seng -3.9%. The Shanghai Composite has, for now, been shielded from the losses as the exchange is closed for the Mid Autumn Festival Public Holiday. S&P futures are currently down over 1% already, and expectations are for a lower open across the major European indices. In particular, it will be worth watching how the FTSE 100 reacts to the news that UK banks may have to stump up some GBP7bn in order to comply with the Vickers Plan to separately recapitalize consumer and securities units by 2019.
Today’s data calendar is pretty light so i predict most FX movement to be stimulated by headlines and rumours.
By
M.Zohaib Gadit
Forex Trading Consultant
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