Europe Needs a Deal

Today's Highlights

Pence ♥'s NATO

More Brexit Votes

Europe Needs a Deal

Please note: All data, figures & graphs are valid as of February 20th. All trading carries risk. Only risk capital you're prepared to lose.

Market Overview

The world has been both comforted and creeped out by US Vice President Mike Pence's comments in Munich over the weekend. The top news item on the circuits right now is how Pence defied Russia and gave his full support to NATO.

This is comforting since both of the above policies were a huge question mark the markets wanted clarity on in the Trump administration. However, it is unsettling that the remarks came from the Vice President and not the horse's mouth.

The markets have been flip-flopping around a lot lately without any clear direction and it's starting to confuse traders.

The fact is, that after Trump's very long and confusing press conference on Friday, people just aren't sure what to think of things and many are hedging their bets.

Here, take this comment from @GoldenEight this morning with his outlook on the market.

Things could go up and could go down. The stocks have incredible momentum but the confidence is also exaggerated. Daiviet has a growing following in eToro and has an interesting strategy for these markets as you can see in his market update video.

How Many More Brexit Votes?

Well, here's a flow chart outlining the process of how a bill becomes law in the UK...

Theresa May was able to get the bill through the House of Commons pretty quickly and without hassle. Today, the House of Lords will debate and vote. At the moment, it seems that the Lords will not be as easy to please as the Commons were.

May is on a tight schedule to get this thing through by March. At the moment, we seem to be on track for a final vote from the House of Lords on March 7th, but any delay along the way could potentially upset this time-frame.

We expect heavy volatility on the Pound Sterling throughout the day as news of the outcomes break.

Also expected from the UK parliament today is a final decision on whether US President Donald Trump will be allowed to visit. So a very eventful day in London.

...but not as eventful as Brussels.

Euro-zone Debt Crisis (cont)

The top topic of the EU meetings today will be Greece's ongoing and seemingly never-ending debt crisis.

European politicians are eager to get a lid on this before it becomes an issue for debate in the fragile elections that are coming up in the Netherlands, France, and Germany.

At the moment we're looking at a Mexican Standoff.

The IMF refuses to get involved unless Germany writes off part of the debt.

Germany says that the IMF will participate, but doesn't feel that any debt should be forgiven.

Both Germany & the IMF want Greece to reform their pensions and tax plans, which is something they may be willing to do but not without a fight.

Though we hope to see some headway today, the next red-line isn't until July when Greece will need €6.3 Billion to pay off outstanding bonds. However, if they leave it until then, the issue is sure to have an overwhelming impact on the election cycle.

At the moment, the EURUSD is holding tight to support at 1.06. Further political trouble and bureaucracy on this issue could easily send it south. Clients in eToro are currently showing a 66% buy sentiment on this pair and are counting on a swift resolution.

Have an amazing week!!