Euro tumbles on fears of Greece exit from Eurozone

Posted On 05 Jan 2015
By :

USD/JPY and JPY crosses went their separate ways at the start of Tokyo trading for the year. The euro plunged under news that Germany’s Angela Merkel is ready for a Greek exit from the Eurozone and ECB QE expectations.
The drop in EUR/USD helped USD/JPY up to 120.68 even as EUR/JPY plunged alongside EUR/USD in thin trading. Moves down in EUR/JPY and other crosses, especially with risk off too as per the early 1%+ Nikkei plunge could not be ignored however, and USD/JPY later pushed down to 119.98. EUR/JPY plunged from 144.43 to 143.36 before recovering to @144.00 later.

EUR/USD opened in Asia at 1.2002 and traded steady between 1.2001-06 initially despite EUR-negative news surrounding Greece. The pair then fell down to 1.1860 where a trade or two was recorded. It quickly bounced however back to 1.1978, filling a big chunk of the gap down, before falling back. EUR will likely remain under pressure with Greek political uncertainty and expectations of ECB QE on January 22 weighing on sentiment. The market will likely remain volatile however what with the Greek election three days after the ECB meeting and stiffer German resistance to full blown ECB QE.

GBP/USD plunged alongside EUR/USD from 1.5355 to 1.5185 before bouncing later to 1.5319. Like EUR/USD, cable has since faded. With BoE interest rates hikes not seen till ’16 now, cable looks to trade on the soggy side. EUR/GBP saw a rally up to 0.7850 early before fading later to 0.7809.

USD/CHF was better bid, up from 1.0015 to around 1.0087 (1.0295 outlier recorded on EBS). It fell back later to 1.0033 before bouncing. EUR/CHF traded on the soggy side between 1.2015-33.

AUD/USD opened in Asia at 0.8095 and traded on the soggy side between 0.8053-0.8107, the former a fresh trend low. Broad USD strength helped cap the upside. Offers were strong on the bounce to the high and remain 0.8100+.

The post Euro tumbles on fears of Greece exit from Eurozone appeared first on Forex Circles.

Source:: Euro tumbles on fears of Greece exit from Eurozone

About the Author

Leave a Reply

*