The Day So Far

European stocks are leading the way lower again this morning on further Grexit risk fears. Thursday’s Eurpgroup meeting is fast approaching and still the rhetoric from both camps suggests the two parties involved in the negotiations are still too far apart for a deal to be likely. News this morning that Eurozone officials are to hold an emergency meeting on Greece on Sunday highlights the fact that they now may well be turning their attention onto ‘Plan B’, containing the damage from a Grexit. The S&P futures have been dragged down to test yesterday’s low this morning after yesterday breaking below its 100 day moving average. The 9 downside in the days ahead. EURSD pushed to new highs for the week around the European open but quickly reversed to new lows. Ultimately, EURUSD continues to display a complete lack of direction and will be perhaps easier to trade after we get the latest update from the Fed tomorrow night. T-Notes this morning have been propped up by the Bund tracking higher as a result of further safe haven flow, but the upside has been capped so far by resistance from yesterday’s at 125.310. Overnight Crude oil broke out of the downtrend seen over the last few sessions, but $60.50 provided resistance with crude then giving back all of the earlier gains to remain unchanged.


The Afternoon View

We head into the US session thinking about Greek risk, the upcoming FOMC meeting and the housing data due at 13.30pm. Greek risk continues to shape global sentiment but the Fed meeting is now close enough to begin to take over as the main influence on US assets. For today we continue with yesterday’s strategy theme. Short S&P 500 based on Greek risk and worried that the Fed are going to hike rates in September. The EURUSD remains the market we are least confident about. We prefer the downside for the same reasons given for the S&P but the Euro has been stubborn in recent sessions despite the impending Greek default. We expect T-Notes to continue to favour the upside with a move above yesterday’s high but this will be dependant on the 13.30 US housing data. The overnight break higher in crude removes some of the downside bias but we still expect any US Dollar strength to push crude prices lower.

Amplify Trading is a Limited company registered in England and Wales. Registered number 6798566. Registered address: 50 Bank Street, 3rd Floor, Canary Wharf, London, E24 5NS. Information or opinions provided by us should not be used for investment advice and do not constitute an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. When making a decision about your investments, you should seek the advice of a professional financial adviser.

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