It’s very deceptive of the market to have stalled 6 points short of the goal line, kind of like what Pete Carroll did in the Super Bowl. But unlike the Seahawks, the SPX gets another chance at pay dirt.
In our special Greek election preview report, we highlighted three possible outcomes from the election: a defeat for the anti-austerity Syriza party, a Syriza victory with conciliatory rhetoric toward Greece’s creditors, and a Syriza victory with a more confrontational approach.
The strong bearish move in the euro initiated in mid-2014 has placed the currency back to the 61.8% Fibonacci move that began in 2000 and the lows of $1.10 are considered an important short- and medium-term support.
One of the biggest casualties of the ongoing global low interest rate environment has been the carry trade, where traders sell a currency with a low interest rate and use the proceeds to buy a currency with a high interest rate. As we know, “high” interest yields have been hard to come by of late, limiting the appeal of carry trades the world over.