MARKET BRIEFING – LONDON OPEN 21.09.2015
On Sunday, the Greek voting public once again elected the SYRIZA party, led by its charismatic leader Mr. Alexis Tsipras back into power. However with a record low turnout of some 50% the sense of voter fatigue and frustration is all too evident.
It was only a few months ago that the Greek public was requested to vote in a referendum on the European Union designed austerity programme. Although Greeks backed Prime Minister Tsipras call to oppose Brussels this exercise of the democratic process was ignored. The decision to ignore the vote and sign off a very harsh austerity programme was taken by no other than Alexis Tsipras.
That Alexis Tsipras was able to galvanize enough support for his SYRIZA party to be re-elected back into power after it had mishandled the negotiations with the European Union is a testimony to the lack of respect the Greek public have for the traditional and establishment back PASOK and New Democracy political parties.
The support for SYRIZA was not overwhelming as it is doubtful that it will win enough seats to gain an absolute Parliamentary majority. It is expected that SYRIZA will take 145 of 300 seats in the Greek Parliament. However, the nationalist Independent Greeks that are led by Panos Kammenos has pledged to support SYRIZA with some 10 seats. The combined SYRIZA / Independent Greek coalition will, therefore, have 305 seats which is sufficient for the formation of a majority Government.
With a second election victory in as little as 9 months under his belt, Alexis Tsipras can now push ahead with reforming the Greek economy. Alexis Tsipras has gone from a staunch adversary to Brussels inspired austerity to being it’s unlikely and some may say unwilling champion of austerity.
This election result was a victory for stability with Greek voters realizing that although their cause to be just and their personal pain real that there was no alternative. It was either reform within the European Area or leave the Euro. This was a price most Greeks were unwilling to pay.
Alexis Tsipras armed with a new mandate can now tackled structural issues that were created during decades of mismanagement under previous New Democracy and PASOK administrations. The hope of many is that Alexis Tsipras can sweep away the corrupt practices of the past and take Greece into a new era of economic growth and correct governance.
The tasks are many, but Tsipras has time on his side. The implementation of reforms to the state sector and pensions is urgent. Furthermore, there is a need for long-delayed privatization programme to move ahead.
I hope and wish that Alexis Tsipras is both bold and lucky over the next few years. However, most of all I hope that Alexis Tsipras embraces the moment and takes this once in a lifetime opportunity to reform Greece for the good of all its citizens.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1385
Target 2: 1.1180
Projected range in ATR’s: 0.0104
Daily control level: 1.1460
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5630
Target 2: 1.5415
Projected range in ATR’s: 0.0109
Daily control level: 1.5660
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 121.20
Target 2: 119.00
Projected range in ATR’s: 1.09
Daily control level: 119.70
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9750
Target 2: 0.9550
Projected range in ATR’s: 0.0099
Daily control level: 0.9725
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3340
Target 2: 1.3125
Projected range in ATR’s: 0.0107
Daily control level: 1.3010
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7270
Target 2: 0.7095
Projected range in ATR’s: 0.0088
Daily control level: 0.7140
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1151.00
Target 2: 1126.00
Projected range in ATR’s: 12.62
Daily control level: 1115.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 47.00
Target 2: 43.00
Projected range in ATR’s: 47.17
Daily control level: 47.50
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