Day trade
Trade view / 22 June 2015 at 14:02 GMT

Euro turning lower on Greek talks

Managing Partner / Spotlight Group
United Kingdom
Instrument: EURUSD
Price target:
Market price:
Background

The euro has turned lower; shedding gains as investors started to show their nerves as talks in Brussels aimed at reaching a deal to unlock bailout finds for Greece may not be sealed this evening.

As the morning progressed EURUSD touched lows of 1.1313 and was off the early, and frankly ridiculous, highs of 1.1403.

The single currency initially gained ground after the Greek government submitted a new package of economic reforms to its creditors, indicating that it is prepared to make concessions to break a deadlock to unlock bailout funds. 

Now, do not get too complacent for as the Eurozone Finance Ministers gathered in Brussels it emerged that Greek officials sent the wrong set of documents. But fear not…they intend to send the correct ones later today.

Greece’s existing bailout is set to expire at the end of this month, when it must also repay EUR1.50 billion to the International Monetary Fund.

If no deal is reached Greece may need to impose capital controls on Tuesday to stem the growing crisis in the banking sector after bank withdrawals rose to more than EUR1bn a day late last week. Sell into this fictitious strength.
EURUSD
 
Source: www.investing.com

Management and risk

Parameters: EURUSD.

Entry: Sell at 1.1360 13:50 BST today.

Targets: 1.1350…1.1331…1.1323.

Stop: 1.1387.

Time horizon: Today.

— Edited by Oliver Morrison

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Non-independent investment research disclaimer applies. Read more
4y
Naf Naf
How come that Greek officials sent the wrong set of documents?
or it is just a devious maneuver to buy some time
4y
goldfinger goldfinger
Fraid nerves got me out at 11404. Thanks for your advice because euro has come off quite a bit. Long cable at 15812 now
4y
Stephen Pope Stephen Pope
Hello naf,

I really do not know how such a ludicrous error can be made. Apparently it was recognised quite quickly and so the correct proposals have been sent. Now I am hearing mixed views from the various Finance Ministers as to how likely a deal today will be.

My trade on the Euro was stopped out and I am so baffled as all any deal today/this week will achieve is to shift the issue a few months down the road.

I am stunned at the proposal of a wealth tax that will start at a low rate of take home pay of EUR1000 per month. Raising taxes on business is another crazy measure as business enterprise is the engine to improve the economy.

Tackling the tax issue is going to be difficult...and the pension commitments are the highest in Europe.
4y
Stephen Pope Stephen Pope
The EURUSD has been crazy today...so much waffle doing the rounds. If there is a deal...it will be a cobbled together programme that will see in trouble before year end.
4y
fxtime fxtime
I suspect the leaks about tax policies are extreme versions and when the greek populace hear of them there will ofcourse be outrage but by then a softer/easier deal would have been finalised and the greek populace will be led to believe that their politicians have done a great job ! Political gamesmanship if you like.....the brits are very good at these sort of ''leaks'' before budget days ! :-(
4y
goldfinger goldfinger
Ouch! I always thought the leaks were in Europe
4y
fxtime fxtime
LOL...perhaps I am too cynical :-)
4y
fxtime fxtime
goldfinger obviously it is a European leak but the brits excel at these sort of political bluff/silliness at budget times imho. Politicians simply fail to say anything straight...they always prefer to obfuscate and delay to ensure they can cross reference with another minister/party etc. The TV sitcom ''Yes Minister'' was a perfect parody of how government (any) operates LOL. This is where you tell me that sitcom was before your time ? :-)
4y
goldfinger goldfinger
Not at all! Yes Minister was a superb parody..And very much of my time first time round sadly...Where does that put euro$ tomorrow morning? Or, are we all p+++++g in the wind?
4y
fxtime fxtime
I am looking for a relief rally to fake uoto 1.14630 or the real max pain move....a break of 1.1310 to short and halve the trade at 1.1300 and trail south. The current Greek tragedy is to much a Homerian tale for me as like Mr Pope above I am very skeptical.
4y
fxtime fxtime
goldfinger we must be similar ages...I am 53 and saw Yes Minister the first time around too LOL.
4y
goldfinger goldfinger
I am 62, and don't live too far from you. Thanks for euro info
4y
goldfinger goldfinger
It will be a political compromise. A deal will be done and we can face a Greek tragedy in the autumn. There is no escaping that fact. I listened to a Greek girl being interviewed at lunch time. Her view, that it was all deeply unfair as the debt had been piled up by the Junta, and now that they had voted to free themselves of this tyranny, their debt should be forgiven. I think I will ask the bank to forgive my kids mortgages!!!!!!!!! But isn't QE doing that for the public exchequer?
4y
goldfinger goldfinger
Long euro$ 11341. I'll stop at 11305 about where you suggest. Coming back to the big picture. I am not sure Germany will want to take the Greek write off just now. It is quite a reasonable sum!
4y
thewickedwiz thewickedwiz
A deal will only bring very short term relief.
The trend is down in Euros, short positions have been reduced dramatically.
This is the decade of the USA still, China will come much later.
Just keep long of USD there is no other country even close, they are pragmatic and have few scruples.
4y
goldfinger goldfinger
I only trade ultra short, and I agree trend is down. Like the comment about being scrupless!
4y
vanita vanita
Sir Steve
I agree eurusd is set to go down in this year as us sept rate hike is live.
So if Greece gets relief BT it will be only tempory and again down side in eurusd fx will go down as debt fears will rise again in Greece.
So I agree with Steve recommendation and there is a opportunity to sell eurusd for long term.
Thanks Steve.
4y
fxtime fxtime
LOL it was the 1.1310 short trade that triggered (outlined above) a good way to start the day :-)
Stop adjusted to 1.1280on the remaining half of the trade.
Good comment ref scruples as it makes them more decisive although they have discovered how to create political deadlock/stalemate too.
Easy money today and now risk free.
4y
goldfinger goldfinger
good call
4y
vanita vanita
Great call steve
3y
As Kurniawan As Kurniawan
sell euusd

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