Doubt in Greek Election, Capital Market Climb Confidence Highlights EURJPY
• The Euro rallied across the board despite incongruous Syriza win in Greek election
• Capital markets are up after the EZ's key election and ahead of the FOMC decision
• Top event risk immediately ahead is the UK 4Q GDP release
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An anti-austerity party has gained control of Greece's future, yet the Euro seemed to show little indication of concern. The Euro managed to rally against the Dollar and all of its other benchmark counterparts after the news was confirmed by the polls. Are investors genuinely unperturbed by the likelihood of a debt standoff between the country and broader Eurozone? Is Greece no longer a contagion threat? The initial market response has led some to assume just that; but the risks are too great to be reassured by this initial market response. Meanwhile, risk appetite is buoyant ahead of the FOMC decision, but how will the market response if the Fed decides to keep to the plan of normalization? These two themes makes EURJPY amongst the most heavily pressurized pairs in the FX market. We discuss the market's deeper fundamental trends and upcoming event risk (like UK GDP) in today's Trading Video.
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