Vector Securities - Analytics

    Vector Securities

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    It is all about Greece

    It is all about Greece
    In general, the market spent all previous day rushing in search for movement direction and catching news about Greece. European politicians continued to make contradictory statements, they said they wanted to see Greece in the Eurozone (the Minister for Finance of Germany Schauble), then they talked about the lack of options to exit from the Eurozone if Greeks would say “no” (Prime Minister of Spain Rajoy). If in the first half of the day euro was trying to fix above 1.1200 on messages that the President of the European Commission Juncker submitted proposals for possible compromise to Tsipras, then in the second half of the day these attempts disappeared. Greece didn’t make payment to IMF and made an application for delaying till November, rate agency Fitch decreased long-term rating of Greece after failed negotiations. As a result, euro bulls surrendered and the pair rolled back to the range 1.1100. Still, it should be mentioned that against the background of this hassle euro still looks quite stable, and not fall into a tail-spin. Yesterday month and quarter closed. Herewith it is difficult to make any conclusions from levels of closure, everything is uncertain and unstable. Yesterday the most logical behavior was of Canadian dollar – after weak data on GDP it fell sharply and it is ready to continue decrease. 
    Today there is no significant economic news in the Eurozone. Final data on business activity of PMI will hardly change considerably. The market watches them with one eye open, paying all attention to Greece. It makes no sense to expect any breakthroughs in this direction till the referendum, verbal speeches of politicians are able to cause turmoil in calm trades. Speaking of events of this day, American statistics are of most interest – the report on employment by ADP and ISM production activity. Forecasts are good for dollar, though it is difficult to predict the reaction of the market against the background of Greece. 
    Trade tactics:
    Now – out of the market.
    Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 

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