syriza talk tough following landslide victory 109902015
<p>The Euro traded below 1.1100 in early Asian trading, as the Greek election results have increased expectation of an exit from the EU. The outcome […]</p>
Share this:
The Euro traded below 1.1100 in early Asian trading, as the Greek election results have increased expectation of an exit from the EU. The outcome suggests that similar scenarios could take place across Europe and threaten the entire political stability of the EU, as some political commentators now see the anti-austerity Podemos Party of Spain gaining support.
With nearly all votes counted, opposition party Syriza are on track to win about half the seats (149 out of 300) in Parliament, just two short of an absolute majority. Forming a coalition partnership does not seem to be an issue either, as Syriza have support from a small right wing party who share similar views on the austerity measures that have been imposed after the €240 billion monetary injection Greece has received over the past five years.
After claiming victory, Syriza’s party leader Alexis Tsipras said the result would end years of “destructive austerity, fear and authoritarianism” and that his country could now leave behind the “humiliation” it has suffered. This has set the stage for fresh negotiations with the Troika, as the European heavyweights were quick to comment:
“The new Greek government will not make promises it cannot keep and the country cannot afford.” - Bundesbank President Jens Weidmann
“The result of the Greek election will increase economic uncertainty across Europe.” – British Prime Minister David Cameron
“It is absolutely clear that the ECB cannot agree to a debt relief for Greece.” – ECB’s Benoit Coeure
The Greek election result and the political fallout will take market precedence, as data releases are light on the day. The week is likely to be dominated by the Central Banks and monetary policy expectations, as the demise of inflation expectations continue to cloud policy. The FOMC on Wednesday will be the highlight, as I also expect a less hawkish tone from the RBNZ on the same day. Q4 growth data will also be scrutinized for the effects of lower oil prices in the UK and US on Tuesday and Friday respectively.
EUR/USD
Supports 1.1090-1.1000-1.0850 | Resistance 1.1270-1.1325-1.1440
USD/JPY
Supports 117.80-117.20-116.85 | Resistance 118.80-119.30-120.80
GBP/USD
Supports 1.4950-1.4915-1.4830 | Resistance 1.5050-1.5080-1.5135
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.