Greece Referendum Makes for Big Headlines, Difficult Trading
• Greece's Referendum to accept creditors proposals in ongoing negotiations is set for Sunday
• An acute gap like the one seen this past Monday on the open is less likely following this event
• After the vote, negotiations will continue and that will make it difficult to make a clear Euro trade
Read more details and see the important calendar for Greece ahead in the Special Report on the Referendum.
Most traders seek out volatility, seeing it as quick returns rather than greater risk. That means many are watching the Greek referendum eagerly. Following this past Monday's sharp gap down from pairs like EURUSD and EURJPY, there is reason to recognize this weekend's vote as a significant risk. This is an important milestone in the progress towards a resolution to the years of financial instability the country and Eurozone have had to deal with. That said, it is not a decisive vote on any of the critical points on whether Greece is 'saved' or leaves the Eurozone. As such, it will not act as the binary outcome that could develop a decisive trade outlook for the world's second most liquid currency. What is as stake, what are the scenarios and how should traders approach this event risk? That is the focus of this weekend Strategy Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.