Will Greece reach an agreement today? Drum roll please. I think the answer is yes, they will, although instead of speculating I will update you tomorrow once the dust settles. We will then have some kind of clarity of the political/financial landscape for the next few months in Europe. Send me your thoughts in an email today of where you think GBP/EUR will go this week. I think GBP/EUR will come off as I don’t see it going much higher both technically and on fundamentals although Greece could change all that in the space of 24 hours. Will they pull a rabbit out of the hat at the last minute? Probably, although this may be the occasion where they don’t.
Over the next 24 hours I would suggest looking at your exposure if you are Euro buyer or Euro seller and consider a strategy to protect yourself. Also, do consider placing market orders to take advantage of any upside.
Are we going to 1.60 or not? The move higher has ran out of steam and I think we’ll start to see a pullback and then a shift lower on Cable again. I will hold off forecasting until I send out a full report tomorrow. If you are USD buyer I would suggest that anything above 1.55 is good value at the moment. Feel free to send me an email.
Data this week
· Eurogroup meeting
· UK inflation Report Hearings
· US Durable Goods
· US GDP Figures
I will write a more detailed report tomorrow although please do remember rates could move substantially over night so please contact me today if you have any upcoming requirements.
Any questions please do let me know.
Written by Liam Alexander