Yen leads as traders eye Greek elections
This morning, the yen is in demand after this morning´s Bank Of Japan meeting. There is also an air of caution ahead of the weekend´s Greek elections, with preferring to move money into the yen due to its perceived safe haven status. There are some signs of optimism though on unconfirmed reports that the election will go to pro EU parties. Even if the Greek´s elect a party that is happy to keep a steady ship, it doesn´t solve the problem of Greece´s uncompetitive economy, but that´s a story for another day it seems.
The yen pairs are seeing the main movement today with the USD/JPY down by 0.61%. The GBP/JPY leads the fallers down 0.76%.
The pound continues to show relative weakness, with the EUR/GBP down 0.10%. One pair is sticking its neck out with some positive trading and that´s the trending NZD/USD.
Coming up today we have UK trade balance figures with a debit of -8.5bn expected. From 13.30 to 14.15 we have some middle tier US economic data with Empire state manufacturing index, capacity utilisation and industrial production figures released. Preliminary University of Michigan consumer sentiment follows at 14.55.
With the Greek elections looming, traders are likely to tread warily until Friday´s close. It would be impossible to predict the outcome of the elections (and the market reaction) with 100% accuracy, but there are some indications from unofficial opinion polls that a market friendly outcome is in the offing.
If this scenario does play out, it could be good news for risk on pairs like the trending NZD/USD. The likely scenario is either a pop higher or a plunge lower, but the odds on offer make an upside bet attractive.
A HIGHER trade on BetOnMarkets.com predicting that the NZD/USD closes Monday above 0.7875 could return 136% if successful. Get this trade now go to: http://goo.gl/XbIq2
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