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Euro at New Year Highs Above 1.33 As Greek Deal Close

Last updated 2/9/2012 2:44 AM ET (GMT -5) 0 Comments - Add your comment

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Boris Schlossberg

Director of Currency Research, GFT

Euro saw a whipsaw session in Asian trade first dropping sharply to 1.3215 only to stage a powerful rebound to take out the 1.3300 barriers on optimism that negotiations in Greece were coming to an end as a deal was within reach.   The pair tumbled on initial headlines that one last issue was still be resolved in talks between Greece and Troika, but when the details emerged that Greece was only 300M from reaching the austerity targets required by the Troika, the pair recovered rising to a fresh yearly high of 1.3312 in late Asian trade.

The Greek government has been given two more weeks to find the additional 300M in budget cuts and Prime Minister Papademous went into all night talks with the Troika to flush out the details. The Greek government has agreed to a cut in minimum wage of 22%  with only the issue of supplementary pensions the only outstanding negotiating point.

As Greek talks continue to stumble to a conclusion the EUR/USD remains bid in a relentless short squeeze higher. Having cleared the 1.3300 barrier it may consolidate in European session as traders await the ECB press conference at 13:30 GMT.  

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About The Author

Boris Schlossberg began his Wall Street trading career more than 20 years ago at Drexel Burhnam Lambert. There, he traded nearly every type of financial product on the market in the U.S., from equities and options to stock index futures and foreign exchange. His innate ability to analyze market information and use it to trade has helped him become an industry-recognized, “go to” trading professional.

These days, whenever the markets move, many organizations turn to Schlossberg for his take on the situation. He is a weekly contributor to CNBC's Squawk Box and a regular commentator for Bloomberg radio and television. His daily currency research is widely quoted by Reuters, Dow Jones and Agence France Presse newswires and appears in numerous newspapers worldwide. Schlossberg has written for publications like SFO magazine, Active Trader and Technical Analysis of Stocks and Commodities. He is also the author of Technical Analysis of the Currency Market and the co-author of Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game with Kathy Lien. He joined GFT in 2008.