This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
It seems very little progress has been made on the Greece front and that will remain a thorn in investors’ side for a while. The latest reports suggest negotiations between the IMF and Greece have stalled with comments from EU officials suggesting time is running out fast. Comments by EU President Donald Tusk dominated headlines after suggesting a hard-line approach will be taken on Greece. It seems the gap between Greece and Europe is still quite wide and the differences are no closer to being resolved. Despite the negative headlines, EUR/USD wasn’t sold off aggressively and remains in the mid 1.1200 region. This week’s highs of 1.1390 were capped by a downtrend that’s been in place since July last year. There is also a compression triangle forming at the moment and I get the feeling the pair is gearing up for a big move. Apart from industrial production, there isn’t much data on the calendar but Greece headlines always have the potential to result in some volatility.