Even Goldman Is Sick Of The Recurring Greek Deja Vu All Over Again Stupidity, Says Sell Euro
Goldman is now short euro... And sick of the endless dejavuness out of Greece.
Overnight we duely got the tech break and printed a fesh low of 1.3201 . The move seemed to be stop loss driven rather than on the back of fresh negative news . With hindsight it would appear that the market piled into shorts on the back of the technical break. A short market, much better IFO and news that Greece is to activate EU aid mechanism led to a very sharp rally to 1.3347. In parallel euribor sold off, Greek cds and spreads improved notably. But this still strikes me as a repeat of the type of news flow and price action which has been a defining feature of this whole episode. I don’t think this solves the sustainability issue and I think we will see the euro come under pressure again. The market has again cleaned out the weaker shorts and I think we will now struggle to sustain bounces.
As todays price action verifies it is very difficult to hold a short through these gyrations but I think that has to be the aim. I would suggest holding a core short and looking to add should we again approach 1.3340/50 with a stop at 1.3420.
Ideally we would see a close back under 1.3265 today but in any event I am hopeful that we will be heading for new lows next week.