AUTOREFRESH 
ForexLive North American wrap: Hellenic progress
By Adam Button || February 7, 2012 at 21:19 GMT
|| 7 comments || Add comment
- Rtrs: Greek govt drafts austerity agreement
- Papademos cabinet meeting delayed to tomorrow
- Schaeuble: won’t oppose ECB action
- Bernanke: 8.3% unemployment understates weakness
- Bernanke’s prepared comments identical to last week
- Merkel expects Troika verdict on Greece by Thurs
- Merkel: eurobonds not a solution
- 9 EU countries want faster progress on transaction tax
- US JOLTS job openings +8.3% in Dec
- Greece parliament could vote on debt swap on Feb 12, local press
- US consumer credit +$19.3B vs +$7.0B exp
- EUR/CHF touches 1.21
- S&P 500 +0.2% to 1347
- EUR leads, JPY lags
The euro shot to 1.3270 (highest since mid-Dec) from 1.3100 on reports (later confirmed) that Greece was drafting the austerity agreement to present to cabinet today. The timeline was later pushed back a day when the agreement wasn’t ready in time for today’s meeting but euro hardly budged, slipping as low as 1.3232.
Late headlines with details of official involvement in the PSI have pushed EUR/USD back toward session highs.
Cable followed the euro’s lead, taking out last week’s highs and hitting the highest since mid-November at 1.5902.
The Greek deal was seen as a more euro-centric solution rather than a boost for risk appetite. Stocks were flatish and commodity currencies made modest gains.
“Grexit” and “Itover” equals “Lirakma” within 12 months. You can already smell it in the forecasts.
Hi Adam, Good Evening , do you think is it time to short EUR? already reached 38.2% fib … can be another 100+ more to start downfall? Thanks
It’s not time ForexBee. The market is still way too short. The trade idea I’ve been talking about for the past week is shorting EUR when a deal is announced (an austerity deal + a bailout deal + a PSI deal). That pop will squeeze out the weak hands and provide a good entry point.
Thanks Adam, I trust your ideas… your recent post on fxbutton about “Incredible time to buy EUR/CHF” was good one.
Thanks for reading Bee. I’ll update it more if I know people are tuned in.
After today, 1.35 looks like a reachable target for EUR/USD.
Adam, when is the “austerity deal + bailout deal + PSI deal” going to be done?
The deadline is Feb 13, according to the Greek MOF. Not sure I believe that anyone in Greece understands the meaning of “deadline” Parliament is scheduled to vote on the swap on Sunday. That’s the most likely time.