Trading Video: EURUSD a Deer in Headlines, GBPUSD Ready to Break
• A special Eurozone Finance Ministers meeting on Greece ended with neither progress in action or language
• Monday is the next deadline for the Greece which will keep the Euro and Equities on edge
• Ahead, the BoE Quarterly Inflation Report will offer a decisive event risk and possibly big GBP move
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Rather than offer much-needed release, the Eurozone Finance Ministers' meeting on Greece leveraged the tension and pushed the endgame further out. On the back of a multi-month bear trend and in the face of another possible crisis of confidence for the Euro-area, the EURUSD volatility has essentially evaporated. Now with a Monday time frame for progress on the Greece-Eurozone stand off, confidence in the currency and broader financial system have been put in a symbolic purgatory. That will alter the trade potential of not just Euro crosses (EURUSD, EURGBP, EURJPY, etc); it can disrupt progress for equity indexes, Yen crosses and other markets with a strong connection to sentiment. Meanwhile, there are corners of the market less encumbered. One particularly interesting pair is GBPUSD which has less risk and Eurozone exposure as well as impending event risk. We look at the event risk, key fundamental themes and appealing technical setups in today's Trading Video.
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