- Greek and Eurogroup talks disintegrate, weighs on the euro
- US markets out on President’s Day holiday
- CA markets out on Family Day holiday
- RBA meeting minutes on tap
The U.S. and Canadian markets might have been out on bank holidays, but that didn’t mean loss of volatility for forex traders!
The biggest mover of the trading session was the breakdown of the scheduled meeting between Greek and Eurogroup officials. The meeting ended hours earlier than scheduled after the parties reached a stalemate.
Word on the hood is that Greek officials had refused to sign an extension of its bailout program with similar terms. However, Eurogroup head honcho Jeroen Dijsselbloem said that an extension is still the best way to go forward, and hinted that “there is no Plan B.”
Word on the hood is that Greek officials had refused to sign an extension of its bailout program with similar terms. However, Eurogroup head honcho Jeroen Dijsselbloem said that an extension is still the best way to go forward, and hinted that “there is no Plan B.” Right now the Greeks are given until Friday to request a bailout extension, with Greek Finance Minister Yanis Varoufakis confident that they will reach a deal with different terms by then.
Not surprisingly, the euro took hits across the board on the news. EUR/USD fell by 64 pips (-0.56%) to 1.1347 after hitting an intraday low of 1.1320, while EUR/JPY dropped by 91 pips (-0.67%) to 134.41 and EUR/GBP fell by 37 pips (-0.50%) to .7386.
Forex traders also decided to sell the pound, the euro’s neighbor. Though Mark Carney hinted last week that a rate hike is still likely the next move for the BOE, GBP/USD still fell by 34 pips (-0.22%) to an intraday low of 1.5340 before recovering to 1.5362. Meanwhile, GBP/JPY also slipped by 34 pips (-0.19%) to 181.98.
Will the anti-European currencies sentiment extend to Asian session forex trading? No reports are scheduled for release save for the RBA meeting minutes scheduled at 12:30 am GMT. The central bank had surprisingly cut its rates in its last decision, so watch out for any hints of further rate cuts in its minutes.
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