Trading Video: Euro Volatility to Intensify, Equities Pause Collapse
• Greeks showed strong support for a 'No' vote to support negotiators in their anti-austerity position
• Euro trouble is still palpable as talks are set to continue amid tightened ECB liquidity support
• Chinese authorities offered enough support to pause the stock markets collapse, but will it recover?
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The Euro opened with another bearish gap to start the week, and once again it retraced much of the losses. Greece's referendum offered a surprisingly strong mandate to push for more favorable terms in the ongoing negotiations with creditors for the country's future. That doesn't change the tide for the negotiations themselves however. Euro traders recognize this is still a finely balanced issue and a big move can develop either way with limited notice. Meanwhile, the gravity of China's equity plunge was tempered Monday by another wave of support. The result was a volatile but positive Monday performance for the Shanghai Composite and a big intraday swing for the S&P 500. Neither seems to be instilling much confidence though. Risk and Euro setups still carry serious uncertainties; while the Dollar, Pound and Aussie may sport more discrete opportunities. We look at the market's bearings 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.