MARKET BRIEFING – LONDON OPEN 14.07.2015
Posted: Tue Jul 14, 2015 6:24 amMORE ON ACFXblog.com
MARKET BRIEFING – LONDON OPEN 14.07.2015
The Greek Prime Minister must be in a lonely place this morning. After caving into the demands of the countries creditors, Alexis Tsipras now has to sell the plan to the Greek Parliament.
The package of additional aid will only add to the Greek debt pile. This additional debt does have a very high price as the Greek Government has to implement a reform and austerity package that will hit the ordinary working Greek citizen very hard.
The reforms to be fair are needed and overdue. For some five years, successive Greek Governments had failed to pass legislation. This legislation was linked to the two prior agreed bailouts.
The failure to have these reforms implemented has wasted 5 precious years. This was due to nothing more than the cowardice of the previous Greek administrations who did not have the fortitude to finish the job.
Now, it is left to Alexis Tsipras, the once poster boy of the radical left of Greek politics to push through Parliament 5 years of reforms in two days of business.
I am all for reform, Greece is in need of a radical upgrade. However, the manner by which these reforms were imposed on a country does leave a bitter taste in one’s mouth.
The German Government flanked by the Dutch, Fins, Slovaks and Lithuanians took a very harsh and somewhat aggressive stance.
Any idea of European solidarity was ignored as the North European Nations put the pressure on the Greek leadership. With the likes of the Slovak Prime Minister Robert Fico saying that he would show Greece “No mercy” one has to question if this European project is one that is worth fighting for.
It would appear the United Kingdom made the correct choice by electing to choose sovereignty over the financial straight jacket that the European single currency imposes.
Greece made a mistake by choosing to join what is currently a failed Euro project. The Greek political leadership early in the last decade decided to fudge their way into the single currency.
Although there were instant rewards of rapid growth, the catalyst of the new found prosperity was built on debt. When the debt became unsustainable the Greek economy collapsed with tragic consequences.
This leads us to the events of the coming week. Alexis Tsipras now has to force through the Greek Parliament legislation that a few days ago he would have never contemplated.
That the Greek Prime Minister has totally ignored the will of the Greek people who voted in a referendum against further austerity is unjust and a travesty of democracy.
Through its actions, the Greek Government crippled the banking system. With the banks no longer functioning the economy is left in limbo. The cost an economy closing down for the best part of 3 weeks is astronomical.
To take the risk and challenge the countries creditors but them to meekly capitulate once the pressure came puts a big question mark over the current Greek Prime Minister.
Is Alexis Tsipras the safe pair of hands Greece needs? Or is he at best inexperienced or at worst a gambler?
Once the Parliament has the final say on the bill and the bailout is approved by all the national governments of the Eurozone, the question is who in Greece should ensure that the agreed plan is implemented.
Do the creditors and the Greek public give Alexis Tsipras a second chance or does Greece need new leadership?
I think the idea of an experienced hand taking charge and becoming the Greek Prime Minister would be a mistake. Greece needs to look forward and not backward.
The Greek Government will also be constrained by what it can and cannot do as it has to function under very strict oversight.
Therefore, the idea of causing fresh political upheaval by calling for elections would be a mistake.
It would be far better that Alexis Tsipras seeks out members of the opposition who he could work with and form a national unity Government.
Is there any realistic alternative?
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1133
Target 2: 1.0867
Projected range in ATR’s: 0.0133
Daily control level: 1.1200
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.5593
Target 2: 1.5377
Projected range in ATR’s: 0.0108
Daily control level: 1.5350
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 124.50
Target 2: 122.38
Projected range in ATR’s: 1.06
Daily control level: 122.00
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9637
Target 2: 0.9425
Projected range in ATR’s: 0.0106
Daily control level: 0.9320
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.2765
Target 2: 1.2551
Projected range in ATR’s: 0.0107
Daily control level: 1.2675
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7495
Target 2: 0.7315
Projected range in ATR’s: 0.0090
Daily control level: 0.7400
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1169.03
Target 2: 1145.97
Projected range in ATR’s: 11.53
Daily control level: 1168.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 53.82
Target 2: 50.16
Projected range in ATR’s: 1.83
Daily control level: 51.00
MORE ON ACFXblog.com
MARKET BRIEFING – LONDON OPEN 14.07.2015
The Greek Prime Minister must be in a lonely place this morning. After caving into the demands of the countries creditors, Alexis Tsipras now has to sell the plan to the Greek Parliament.
The package of additional aid will only add to the Greek debt pile. This additional debt does have a very high price as the Greek Government has to implement a reform and austerity package that will hit the ordinary working Greek citizen very hard.
The reforms to be fair are needed and overdue. For some five years, successive Greek Governments had failed to pass legislation. This legislation was linked to the two prior agreed bailouts.
The failure to have these reforms implemented has wasted 5 precious years. This was due to nothing more than the cowardice of the previous Greek administrations who did not have the fortitude to finish the job.
Now, it is left to Alexis Tsipras, the once poster boy of the radical left of Greek politics to push through Parliament 5 years of reforms in two days of business.
I am all for reform, Greece is in need of a radical upgrade. However, the manner by which these reforms were imposed on a country does leave a bitter taste in one’s mouth.
The German Government flanked by the Dutch, Fins, Slovaks and Lithuanians took a very harsh and somewhat aggressive stance.
Any idea of European solidarity was ignored as the North European Nations put the pressure on the Greek leadership. With the likes of the Slovak Prime Minister Robert Fico saying that he would show Greece “No mercy” one has to question if this European project is one that is worth fighting for.
It would appear the United Kingdom made the correct choice by electing to choose sovereignty over the financial straight jacket that the European single currency imposes.
Greece made a mistake by choosing to join what is currently a failed Euro project. The Greek political leadership early in the last decade decided to fudge their way into the single currency.
Although there were instant rewards of rapid growth, the catalyst of the new found prosperity was built on debt. When the debt became unsustainable the Greek economy collapsed with tragic consequences.
This leads us to the events of the coming week. Alexis Tsipras now has to force through the Greek Parliament legislation that a few days ago he would have never contemplated.
That the Greek Prime Minister has totally ignored the will of the Greek people who voted in a referendum against further austerity is unjust and a travesty of democracy.
Through its actions, the Greek Government crippled the banking system. With the banks no longer functioning the economy is left in limbo. The cost an economy closing down for the best part of 3 weeks is astronomical.
To take the risk and challenge the countries creditors but them to meekly capitulate once the pressure came puts a big question mark over the current Greek Prime Minister.
Is Alexis Tsipras the safe pair of hands Greece needs? Or is he at best inexperienced or at worst a gambler?
Once the Parliament has the final say on the bill and the bailout is approved by all the national governments of the Eurozone, the question is who in Greece should ensure that the agreed plan is implemented.
Do the creditors and the Greek public give Alexis Tsipras a second chance or does Greece need new leadership?
I think the idea of an experienced hand taking charge and becoming the Greek Prime Minister would be a mistake. Greece needs to look forward and not backward.
The Greek Government will also be constrained by what it can and cannot do as it has to function under very strict oversight.
Therefore, the idea of causing fresh political upheaval by calling for elections would be a mistake.
It would be far better that Alexis Tsipras seeks out members of the opposition who he could work with and form a national unity Government.
Is there any realistic alternative?
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1133
Target 2: 1.0867
Projected range in ATR’s: 0.0133
Daily control level: 1.1200
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.5593
Target 2: 1.5377
Projected range in ATR’s: 0.0108
Daily control level: 1.5350
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 124.50
Target 2: 122.38
Projected range in ATR’s: 1.06
Daily control level: 122.00
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9637
Target 2: 0.9425
Projected range in ATR’s: 0.0106
Daily control level: 0.9320
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.2765
Target 2: 1.2551
Projected range in ATR’s: 0.0107
Daily control level: 1.2675
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7495
Target 2: 0.7315
Projected range in ATR’s: 0.0090
Daily control level: 0.7400
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1169.03
Target 2: 1145.97
Projected range in ATR’s: 11.53
Daily control level: 1168.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 53.82
Target 2: 50.16
Projected range in ATR’s: 1.83
Daily control level: 51.00
MORE ON ACFXblog.com