Well. (It’s probably more than day 2, but it’s day 2 on this blog)
Yesterday was a day of nothing really. There’s a lot of movement of putting money into safe havens like GBP (yes folks, sterling is seen as a safe haven), USD etc. My thoughts are that if Cyprus leaves the Euro and goes bankrupt it could be the start of a kind of domino effect making massive gains for anyone selling EUR. My thoughts are that a week long trade EURGBP SELL will reap excellent rewards but with big stop losses as it might be a roller coaster of a ride.
The pair EURGBP incidentally is at the top of a 4 month bearish trend so selling at this point is a good idea I think because it’s more likely to trade down now. Especially with EUR worries.
Bank of England budget tomorrow so that should be interesting, but that’s expected and we write in a move on price there already. The EUR thing, well anything could happen, but the pressure is on for it to drop. Although I am reading some people on trading view using the words BULLISH and EURO in the same sentence. They probably don’t watch the news.
15:00 GMT Update 1 hour before vote.
1. The vote to tax the savings fails. The country either goes round again in a circle to try and find a solution OR goes bankrupt, another solution will have to be found. EUR FALLS
2. The vote to tax the savings succeeds, but with the lower rates of tax than expected there will not be enough to meet the shortfall. Another solution will have to be found. EUR POSSIBLY STAYS WHERE IT IS OR GOES POSITIVE
3. The russians come in and save the day. Bizarre, but might just happen.
16:00 GMT Update
1 MILLION Euros in cash is being flown to cyprus now in CASH to give to service people to protect from a lack of cash. EURGBP has now dropped by 40 pips in the last 10 minutes PRIOR to a decision by the government in Cyprus.
16:30 GMT Update
There is talk the Finance Minister was flown to Russia, but has resigned, this has not been confirmed actually. Also that the decision will be postponed (if you can’t win the game, don’t play!).