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5 Jan 2015
Heavy volatility seen in Asia, Greek concerns linger – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that the Asian trading session saw heavy volatility in the FX majors with Euro falling to $1.1870, GBP falling below $1.52, and the antipodeans falling 50 pips, further noting that the Greek uncertainty is weighing down euro sentiments.
Key Quotes
“The open of the first full trading week of the new year was met with extreme volatility in the currency markets, particularly in the euro pairs, as EUR/USD crashed over 120pips to $1.1870s - the lowest levels since March of 2006 - before recovering to $1.1930s.”
“USD also made further ground in the other majors, with GBP/USD briefly falling 150pips below 1.52, AUD/USD down 50pips at $0.8050, and NZD/USD down 80pips around $0.7620. A combination of factors is being attributed to fresh euro selling, including further bearish positioning going into the eurozone flash CPI this week, just as ECB's Draghi last week announced that the central bank sees a higher risk of failing on inflation objectives.”
“Geopolitical news over the weekend related to Greece are also weighing on sentiment - Germany's Der Spiegel reported that Chancellor Merkel is less concerned with the possibility of a Greek exit, calling the fallout as "manageable", while opposition Syriza party leader Tsipras reiterated he would move to end the austerity policies if elected in the polls coming up in just 3 weeks.”
“Local press surveys still see Syriza ahead of the ruling ND party by 30.4% vs 27.3%, though that margin has narrowed slightly.”
Key Quotes
“The open of the first full trading week of the new year was met with extreme volatility in the currency markets, particularly in the euro pairs, as EUR/USD crashed over 120pips to $1.1870s - the lowest levels since March of 2006 - before recovering to $1.1930s.”
“USD also made further ground in the other majors, with GBP/USD briefly falling 150pips below 1.52, AUD/USD down 50pips at $0.8050, and NZD/USD down 80pips around $0.7620. A combination of factors is being attributed to fresh euro selling, including further bearish positioning going into the eurozone flash CPI this week, just as ECB's Draghi last week announced that the central bank sees a higher risk of failing on inflation objectives.”
“Geopolitical news over the weekend related to Greece are also weighing on sentiment - Germany's Der Spiegel reported that Chancellor Merkel is less concerned with the possibility of a Greek exit, calling the fallout as "manageable", while opposition Syriza party leader Tsipras reiterated he would move to end the austerity policies if elected in the polls coming up in just 3 weeks.”
“Local press surveys still see Syriza ahead of the ruling ND party by 30.4% vs 27.3%, though that margin has narrowed slightly.”