As we warned, the EURUSD would surge on any headlines that a coalition pro-bailout government would be formed (the chances of which died yesterday when Samaras handed back the government formation mandate to the president). However the following...
- GREEK CONSERVATIVE LEADER SAMARAS SAYS IS READY TO TOLERATE MINORITY GOVERNMENT - BBG
- SAMARAS SAYS SYRIZA STATEMENTS DON'T SECURE PLACE IN EUROPE - BBG
- GREECE'S SAMARAS SAYS DON'T WANT COUNTRY TO GO TO NEW ELECTIONS - BBG
- GREEK CONSERVATIVE LEADER SAMARAS SAYS I WILL NOT PUT SIGNATURE TO THE DESTRUCTION OF GREECE - BBG
... is NOT the good news for a pro-bailout Greek government, that the algos were looking for, as it means that the Euro-friendly forces do not have the needed majority, which is to be expected in a government in which anti-bailout parties have nearly 60% of the vote: sorry, but the math just doesn't work. Of course, the algos have not been programmed to read into nuances, and the initial EURUSD spike is 40 pips higher. We can patiently wait until their 19 year old math Ph.D. programmers of algo signals understand what this headline actually means.