Greece got a 45 Billion Euro rescue package at 5% interest rate, which is below the 6.98% rate. As reported in the Bloomberg Article, managing director of BlueGold Capital Management LLP in London said”
“This is a huge amount,” “This is more than a bazooka. They have gone nuclear on the issue of Greece. In the short run the market is short Greek assets so we’ll get a rally in those.”
For more on the article from Bloomberg, click here
With respect to this news, I’m very confident that we’ll see the following in this week, or at the very least, early next week:
1. EUR/GBP will trade above 0.9000
2. EUR/USD should break 1.3700 and head towards 1.4000
With the issues in Greece resolved, market will once again be confident in the EURO, and in term we should see risk appetite returning to the market, but the focus should be on Euro recovering from the last few months of sell off pressures… I wouldn’t be surprised to see EUR/JPY above 135 or EUR/USD above 1.40 anytime soon.
Henry
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{ 4 comments… read them below or add one }
Point well taken, thanks!
Hi Henry, what about those nasty gaps across all Euro pairs? Do they need to be closed first before the pairs could move confidently upwards?
Market could retrace a bit on the back profit taking from the sharp upmove, you can close first if you want but I am actually looking to add to my position as I get more favorable entry.
Hey Henry, thanks for the great article, hope to see eur/usd up there soon