In a frenetic last minutes of trading, finally, a currency seems to be moving in the Forex market; and this could be no other than the Europen shared currency, which is being bid to the boots after headlines suggest Eurozone official have reached a 'broad agreement' on plan for banks to voluntarily cut Greece's debt. Private creditors are thought to accept a 50% haircut on Greek bonds.
At present, the Euro has recovered from an early dip at 1.3865 to rise as high as 1.3952 as a fair amount of short-covering action is noted, meaning all those investors hoping to make lucrative bets against the Euro will have to sit on its hands again, waiting a better day to pick the right timing to play the Euro short trade; only difference is that they will be now a bit shorter of capital. The rollercoaster in the pair continues, with a short-lived pullback to retest the former intra-day high at 1.3918 before another vigorous take off. Euro approaching highs as we type-up the report.
As rightly noted by renowned market expert Jamie Coleman, from Forexlive, eralier on the week: "The most frustrating thing about financial markets is that you can have the exact right macro view but still lose money if your entry points are not perfect. I fear a sharp short-covering rally in the next 24-hours followed by renewed weakness later in the week after the event risk from the EU summit is over."
