Ashraf Laidi on CNBC After Greece Elections - June 17, 2012
Jun 18, 2012 6:42
In a 2-part interview, Ashraf says why EURUSD is expected to extend its gains as part of the corrective bounce after Greece's New Democracy won nearly 30% of the votes and will lead a collation government which is likely to be made up of New Democracy and third-place Pasok.
Ashraf distinguishes outright QE vs. Operation Twist, highlights the shape of EUROIS spread, gauges EURUSD technical and distinguishing PIIGS & BRICs foundation.
The lack of any unfavourable event detracts attention of Central banks of worrying about: 1) delivering "liquidity" solutions (such as currency swaps) and places Greece back onto worrying about securing its 1bn tranche, which was withheld after May's inconclusive elections, and; 2) covering its 3.9 bn interest payment to the ECB due in August. DOES THIS MEAN we extend our RIsk-On Positioning? Find out our latest Premium Insights on EURUSD, AUDUSD, GBPUSD, Gold, & Crude Oil. DIRECT ACCESS TO these trades is found here:http://ashraflaidi.com/ products/sub01/access/?a=647 NONsubscribers can join here:http://ashraflaidi.com/products/sub01
Friday's post showing a possible top in US 10 year yields goes in line with the 10-2 charts. The left-hand chart shows the deterioration in the 10-2 spread, reflecting further flattening in the yield curve. This is usually a sign of the bond market challenging the Fed's rate hike expectations. Retail traders are often advised to NOT to fight the Fed, but this does NOT APPLY for the bond market, which often fights/challenges the Fed and wins. See full explanation inside the charts.