Asia reportedly not at all impressed by the ongoing Greece saga and was quick to clear their books of so-called risk trades today. Stocks swooned led by the Nikkei, EUR/JPY stops tripped whilst Greece just won’t go away. Throw into the mix a weak GBP on the back of the televised political debate and all up we could have an interesting Friday session.
Given the bearish start to the last day of the week and the fact no one will want to go home long of risk trades and we should see some more downside probing in EUR/USD today. It seems now like a game of chicken with the market daring the authorities into action. This is reminiscent of the old vigilante moods in the bond market in the 90s. As I write this piece EUR/USD is already testing the lows of the day.
