Personally, I was hoping that Europe would secure deal on Greece but I don’t count on the prime minister of Greece torpedoing talks related with Europe himself. Marc. Chandler has called it a reckless political gamble that is taken by the inexperienced Greek Government. It might be, but it has made huge impact on the Asian market on this morning.

” € & 円”

If you compare the Euro price of trading in past three months then you will see that it’s on the lowest level. With the tiny jump of 1.0990, it might shoe positive signs on the current picture but don’t make huge expectations from this jump. In the current market, it is moving into the negative side because of the impact of euro and its uncertainty. USD/JPY are enjoying the benefit of weak EURO with 2.53% down at 134.81 as forex traders are selling Euro for securing their investment by choosing Yen. At the mean time it is the only option that is at least secure for investors without great profits. In the common block, CAD, Pound, Aussie dollar and Kiwi dollar are also becoming safer option as they are enjoying great jumps due to weak Euro.

This morning, things turned drastically and it reminds the events of 2008 as many of the traders were in the similar position. The policy makers are not insane and letting Lehman Brothers fall over on the irrelevant Bear Stearns collapse that had very less impact on the market in the past 6 months. Perhaps, that is the main reason why Euro has became weak within very less time as it was the safer investment option for the traders. We were further shocked with the Secretary Hank Paulson’s first bailout package and its impact on the GFC.

It is very clear that there is no way out from this situation as experts are also not sure about the certain changes in upcoming times. It is very ugly side of the story and only short terms winners (Traders) are enjoying this situation.

Chart of the DAY: EUR-JPY


Asian trading wrap on the Friday said ‘few days earlier, I started talking about this breaking lower. It has started and you can see the increased rates of EUR/JPY break down with the 200 points average. You can still see wear and tear in the market so be proactive and make wise decision without considering about any hope for Euro.

Good luck!