EUR Trading Risk Update

1 July, 2015

EUR markets have been shaky this week, but we have yet to experience the kind of turbulence that many expect, given the gravity of the Greek situation. The EUR opened some 160 pips lower on Monday, but quickly retraced to fill that gap and even rose beyond its Friday close.

It would appear that markets are having a hard time pricing-in such unprecedented events. Greece’s missed loan repayment of 1.6 billion to the IMF yesterday. Along with the scheduled referendum on Sunday, ATM runs, capital controls and a banking system on the very brink, lead us to believe that Monday’s gap may have just been the prelude to a much more volatile period for the euro.

As a protection against the uncertainty of these events, we would like to advise you that we may take action to limit the risk of trading EUR pairs as the situation develops. This could include limiting EUR trading to close only, or reducing available leverage to 1:50 before market close this coming Friday. This will increase the required margin for trading EUR pairs to 2%, which will also apply pre-existing positions. We therefore kindly request that you review your positions and ensure that you have sufficient margin to maintain them, factoring-in the possibility of an increase in margin requirements.

We will keep you advised before any changes are made.


Source link  
Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...


Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...


Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

  


Share it on:   or