Morning Report: 08.30 London
- This morning markets are trading lower on news that the second Greek bailout may be delayed until March 2nd. According to the FT, European officials are sceptical about Greece’s willingness or ability to meet the conditions of such a bailout. On the other side, Greek leaders are increasingly pushing back against what they see as outside interference.
- US stock market futures are down 0.40% with European markets expected to open lower by a similar margin.
- The euro is down for the fifth day in a row, with the EUR/ USD off by 0.35% and testing the 1.3000 level. The EUR/ GBP is off by 0.31% as the pound shows relative strength.
- The biggest faller is the NZD/ USD which is off by 0.64% in early trading. The Aussie is faring better after better than expected employment data.
- The yen has continued to weaken with the USD/ JPY trading at what would be its highest closing level since August.
Coming up today:
- Coming up today we have a number of US economic data points released at 13.30 including US building permits, PPI and unemployment claims.
- At 14.00 Fed chair Ben Bernanke speaks, while at 15.00 we have the Philly Fed Manufacturing Index.
Bet Idea:
- Many are sceptical of the long term viability of Greece remaining in the euro in the medium term, and rightly so. However, in the short term, things are a lot more difficult to predict. One confident or reassuring headline from European or Chinese leaders can be enough to bring significant short term relief.
- The EUR/ GBP has been beaten up over the last two days, but the British economy itself is no bed of roses. The EUR/ GBP has been more likely than not to rebound in such situations. So although there is a risk of further downside, there is a fair chance of a rebound here. It’s a good example of where fixed odds trading can be extremely useful. If the euro plunges to the abyss, the risk is limited.
- A HIGHER trade predicting that the EUR/ GBP will close above 0.8325 in 1 days time could return 166%.
- You can find direct links to this trade idea here and here.
Summary:
