Today’s headlines on Greece are NOT in the market’s volatility range or where equities should feel comfortable at this level.
The euro is finding a toe hole on speculation that the new Greece government may soften its stance and work with international creditors.
Emerging Money Daily Audio Call for January 23 2015.
The European Central Bank (ECB) exceeded expectations (so rare in life) with their monthly 60 billion euro asset purchasing until Sept 2016 and an open ended loaded bazooka in their pocket.
The ECB, Gold and U.S. dollar – This morning the European Central Bank (ECB) surprised global markets by slashing key interest rates to a new record low of 0.05% from 0.15%.
Since the Fed many non G3 currencies have made higher lows against the Dollar. We think some weaker U.S. data today on housing along with better external data for many of the FX crosses we are watching means this trend can continue.
The euro zone crisis has been going on now for two years and the worst is not over yet. This has sent traders looking for vehicles to profit from the crisis as well as hedging their portfolio. One vehicle that traders turned to has been ETFs. ETFs are a great way to gain exposure to markets with a stock market account without having a futures/commodities or forex account.
Hopium continues to fade in the euro zone as traders fear the European Central Bank is kicking the can down the road again.
After the ECB indicated there could be “merit” in providing the euro zone’s bailout fund with a banking license, and a growing number of FOMC committee members indicated additional stimulus may be needed to spur U.S. job growth, speculation ramped up as the euro pushed higher against the U.S. dollar.