Video: Greece Headlines Move the Euro, S&P 500 Leaning Precariously
• 'Risk trends' represent a broad fundamental theme, but the SPX leaning on channel support is key
• Once again official remarks on Greek negotiations bode poorly while new rumors roust the bulls
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Both major financial market themes - risk trends and monetary policy - are active to start the week. That said, their influence is shifting turns at the yoke. The Dollar's rally to end the week following the better-than-expected payrolls figure and wage increase subsided Monday as investors curb their speculative reach ahead of next Wednesday's official FOMC meeting. For the Euro, the rally we would see to open the week was not based on economic confidence - a Eurozone investor sentiment index slipped a second month - rather it was related to the Eurozone's 'risk' pressure point: Greece. After troubling remarks from both sides of the negotiation table over the weekend, a WSJ report suggested there was progress with an offer from creditors to extend Greece's bailout program to March 2016 - though this would need to come with reforms and be approved by a disinterested Greece. Meanwhile, broad risk is showing serious pressure with the S&P 500 leaning heavily on its remarkably consistent two-and-a-half year trend channel support. We discuss these themes and drivers in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.