The Greek government’s decision to walk out of bailout talks with its creditors, and call a July 5 referendum on the bailout terms, have left FX markets very confused, says Saxo Bank’s John Hardy. John Hardy: I think it shows a couple of things. First the markets look very confused and unsure what to do. We don’t know what is going to happen with this referendum and what the implications are going to be. It does look like ‘yes’ to bailout is favoured. EUR/USD spikes to 1.1250 after Greek talks collapse. There exists uncertainity ahead of July 5th vote on bailout. Uncertanity is what thats driving the Euro strong at the moment. We are seeing an odd situation with intraday range quite large and exaggerated. But if you look back a few weeks we are still stuck in the same range and no trend here. When we look at the options market it shows huge implied volatility because the people are fearing we are seeing something catastrophic. We are seeing a trendless market here until we see more clarity. To me I see it as a lose out situation for the Euro. I cannot come to any other conclusion unless the US economy suddently starts to fall off. I see it as the Euro will eventually lose out to USD. I think Euro will drop if Greece exits. Also the Euro could fall on ECB divergence from US Fed. Posted on Forex Video Zone . (Visited 7 times, 1 visits today)
Sunday, 5 July 2015
Hardy — Forex Market Confused with Greece Situation
Source: www.forexvideozone.com - Wednesday, July 01, 2015
The Greek government’s decision to walk out of bailout talks with its creditors, and call a July 5 referendum on the bailout terms, have left FX markets very confused, says Saxo Bank’s John Hardy. John Hardy: I think it shows a couple of things. First the markets look very confused and unsure what to do. We don’t know what is going to happen with this referendum and what the implications are going to be. It does look like ‘yes’ to bailout is favoured. EUR/USD spikes to 1.1250 after Greek talks collapse. There exists uncertainity ahead of July 5th vote on bailout. Uncertanity is what thats driving the Euro strong at the moment. We are seeing an odd situation with intraday range quite large and exaggerated. But if you look back a few weeks we are still stuck in the same range and no trend here. When we look at the options market it shows huge implied volatility because the people are fearing we are seeing something catastrophic. We are seeing a trendless market here until we see more clarity. To me I see it as a lose out situation for the Euro. I cannot come to any other conclusion unless the US economy suddently starts to fall off. I see it as the Euro will eventually lose out to USD. I think Euro will drop if Greece exits. Also the Euro could fall on ECB divergence from US Fed. Posted on Forex Video Zone . (Visited 7 times, 1 visits today)
The Greek government’s decision to walk out of bailout talks with its creditors, and call a July 5 referendum on the bailout terms, have left FX markets very confused, says Saxo Bank’s John Hardy. John Hardy: I think it shows a couple of things. First the markets look very confused and unsure what to do. We don’t know what is going to happen with this referendum and what the implications are going to be. It does look like ‘yes’ to bailout is favoured. EUR/USD spikes to 1.1250 after Greek talks collapse. There exists uncertainity ahead of July 5th vote on bailout. Uncertanity is what thats driving the Euro strong at the moment. We are seeing an odd situation with intraday range quite large and exaggerated. But if you look back a few weeks we are still stuck in the same range and no trend here. When we look at the options market it shows huge implied volatility because the people are fearing we are seeing something catastrophic. We are seeing a trendless market here until we see more clarity. To me I see it as a lose out situation for the Euro. I cannot come to any other conclusion unless the US economy suddently starts to fall off. I see it as the Euro will eventually lose out to USD. I think Euro will drop if Greece exits. Also the Euro could fall on ECB divergence from US Fed. Posted on Forex Video Zone . (Visited 7 times, 1 visits today)
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