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FxProTV

FxPro Currency Check 0730 30.06.2015

FxPro Currency Check 0730 30.06.2015

Simon Smith

The message beyond FX

The single currency slowly but surely closed the opening gap yesterday. But make no mistake, this does not mean that markets are ambivalent towards the fate of Greece; it’s more the nature of spot FX. Looking elsewhere, such as the FX options market, together with equities, peripheral bond markets (Spain, Italy) and also safe haven assets (e.g. German bonds), all the signs are that the concern remains. Today, Greece is expected not to repay the EUR 1.5bln owed to the IMF. This is not a default, ...

FxProTV

FxPro Currency Check 0730 29.06.2015

FxPro Currency Check 0730 29.06.2015

Simon Smith

Risk aversion dominates after Greece

The Euro’s opening gap lower at the start of the Asian session is steadily being filled, with around half done so far. At the lows, the euro was 1.9% lower vs. Friday’s closing levels, but currently funds itself around 0.8% weaker vs. the dollar. You can find more on the weekend developments and the implications in our blog (“The single currency is to blame”). The situation is that the Greek financial system is half-frozen, with the stock market closed, together with banks. For the following ...

FxProUpdates

EUR High Volatility Alert 3

FxPro would like to inform you that all accounts are subject to normal trading conditions except our fixed spread accounts that shall be limited to 'close' only until spreads normalise. Kindly note however the above are subject to change and we shall notify you should this be the case.

Simon Smith

The single currency is to blame

Naturally there is a lot of noise as to who is to blame for all of this. The fact is no-one is to blame but monetary union itself. The events of the past few months and especially twenty four hours have been the ultimate manifestation of the short-comings of the single currency. There is not a financial crisis in history that has not been solved without a combination of debt restructuring, monetary and fiscal easing, together with a currency devaluation. OK, we’ve had two out of three, but the ...

FxProUpdates

EUR High Volatility Alert 2

With Greece's uncertain future in the Eurozone continuing to dominate the headlines, we would like to inform you that we are doing everything in our power to reduce the risk of trading EUR pairs. In order to provide a safeguard against a highly volatile market open, trading on EUR pairs may be subject to increased margin requirements. This depends on the outcome of today's decisive Eurogroup meeting, and how the situation in Greece unfolds over the rest of the weekend. Please be advised that, ...

FxProUpdates

EUR High Volatility Alert

Due to the ongoing uncertainty surrounding a possible Grexit from the Eurozone, we would like to warn you that high volatility on EUR pairs is becoming increasingly likely. All clients should be aware that as we move closer to a possible Grexit, the likelihood of markets opening on Monday with gaps, severe volatility, widened spreads and thin liquidity increases. Indeed, such market conditions are possible even before market close tonight. As a result, we think it prudent to advise you of the ...

FxProTV

FxPro Interview with TipTV – What does the weekend hold for Greece and FXstreet seminar

Angus Campbell

Is political will going to save Greece?

Another day passes with no deal on Greece and investors are likely to want to position themselves for negotiations to go on into the weekend by reducing exposure to risk assets. Indices are a little softer on the open and the euro is offered as we see yet another classic situation when it comes to the Eurozone with things going down to the wire. Investors however remain optimistic that a deal will be struck ahead of next week's IMF payment deadline throwing Greece yet another lifeline. If the ...

FxProTV

FxPro Currency Check 0730 26.06.2015

FxPro Currency Check 0730 26.06.2015

Angus Campbell

IMF’s red pen

Risk assets had their shine taken off them after investors were given a stark reminder that a deal is yet to be done and Greece’s proposals from last Sunday are subject to considerable scrutiny. The IMF had the red pen out yesterday as it made its amends to much of the pension reforms put forward and the knock back has led to further strong language from the Greek prime minister, a reaction that is unlikely to improve relations with the country’s creditors and a risky stance to take at such a ...

Angus Campbell

Expect a Rocky Second Half in 2015

As we head towards the end of the first half investors seem to be approaching the second half of 2015 with a distinct degree of caution and trepidation. When stock markets have recorded the sort of mixed and in some cases meagre to negative returns for a six month period, one has to ask the question as to whether there is any meaningful investor appetite left to lift equities higher. At the same time FX markets have had a very turbulent first half, which looks set to continue in the months ...

Angus Campbell

Dollar could receive boost from GDP

The dollar was given a boost yesterday after Fed voting member Jerome Powell spoke of his preference for a September rate hike by the FOMC and even two hikes this year. This hawkish stance saw the dollar index spike, knocking EURUSD which dipped back below 1.1200 although the euro has fought back overnight and is trading at 1.1210 this morning. The dollar will be tested today with the release of Q1 GDP data which is expected to be revised upwards from previous readings, with market expectations ...

Angus Campbell

Deal or no deal

So Greece has finally presented the EU with reform proposals that were welcomed and there was a great deal of optimism as yesterday’s trading session saw a surge in risk appetite. That risk appetite is set to continue this morning with European equities looking to add to yesterday’s gains as clear political will power looks set to save Greece from default and a nasty exit from the euro, for the summer at least. It doesn’t look like Greece will receive any further debt relief, but their ...

Angus Campbell

Greece’s day of reckoning

The ECB stepped in once again to help prop up Greek banks last Friday with an exceptional round of Emergency Liquidity Assistance funding as a record amount of euros were withdrawn from the Greek banking system. This may not however be enough to stem the exodus as today’s crunch summit gets underway to try and end the impasse. It is estimated that not much over €100 billion is deposited in Greek banks, well under half of what they were at the height of the banking crisis seven years ago and ...