The Other Event Risks for the Euro

The euro’s aloft shift on the results of elections in Greece was rather fleeting, to say the least. It is time to focus the attention elsewhere for investment.

Immediately after the confirmation of the triumph of pro-rescue parties in the weekend’s Greek poll, the Euro experienced a significant upward drift. However, before people could even make noise for the New Democracy Party it just went…pfffft.

A lot of market analysts and financial experts have given their views on the latest development in Greece. For instance, the head of the upcoming Asia rates strategy, at the Bank of America Merrill Lynch, Claudio Piron, offered a couple of reasons why this is happening.

He said that they had a clear focus on the event, but once it has transpired they will shift their attention to the expected Spanish Bill auction on Tuesday and the country’s bond auction on Thursday. They also expect to get Spain’s banking audit. The Euro group is also expected to meet on Thursday. The G7 leader’s meeting will be happening on Monday while that of the Fed will be happening on Wednesday. He added that there are different kinds of risks that have begun to reassert their focus for the trade.

Given the vagueness surrounding most of these events, Piron noted that his firm is focusing more on other currencies, and advising investors to sell the Australian dollar against the New Zealand dollar.

He however admits that the two currencies are risk-on currencies. Piron concluded by noting that the Reserve Bank is expected to release minutes from the forthcoming Monetary Policy Committee summit.

0 comments

Add your comment

Nickname:

E-mail:

Website:

Comment:

Related Readinggo to homepage

	Is Metatrader a Broker?Comments Off Is Metatrader a Broker? A: No. Metarader is a platform on which to trade the FX markets with your chosen broker. The majority of brokers offer Metarader as a trading platform, but Metarader itself (owned by Metaquotes) is not involved with market pricing and trading.

	Here Are the Historical Implications of “Twist” On FX, Gold, and Rates – Deutsche Bank(0) As generally anticipated the FED on Wednesday expanded its operation twist, which would have expired by end of June. The twist is now expected to end at the end of the year. In principle, that development is expected to trigger the sale of near-term securities and purchase of long-term bonds. Alan Ruskin, the head of

	AUDUSD Nearing Confluence of Resistance above 10200(0) “THE MARKET(S)” a.k.a. “RISK” SNAPSHOT – 60 Minute Closes SPX 500 – Daily Bars This chart has been updated since last week. However, there are no changes to the text. Apparently, the correction (rally) is complete but the time is yet. Somewhat over 50 percent of the turn down was retraced in more than a

	RPT – Spanish and Italian shares fall, bond yields rise(0) (Repeats to new subscribers without any alterations to the copy) Reports from Reuters claim that there was a fall in financial assets in Spain and Italy on Monday. However, it was noted that the 10-year Spanish public bond yields rose significantly, hitting the highest point in Euro-era of 7 percent. This rise was largely attributed

	Positioning For The Weekend: BofA’s Risk Cheat – Sheet(0) As Greece prepares to go for the next round of pools, this weekend, BAML’s credit plan group tackles three possible results of the polls on various asset classes. Although they may have concerns about all potential post-poll scenarios, it does not mean that they are going to cause an exit from the currency union, at

Currency Trading Basics

About AppliedFX.com

AppliedFX.com was formed in early 2010 to fill a gap in the forex market - currency trading basics. Many of the major forex sites are intimidating for new traders, often filled with complex material and confusing trading terminology.

AppliedFX.com offers a fresh perspective to the traditional forex trading course. With easy to digest content, 100% no jargon and a strong focus on newcomers, our site will guide you through the process of becoming a successful forex trader.