January 30th, 11:07 am by Barbara Zigah
(eToro Blog) As Davos wraps up and the E.U. economic summit gets under way, news out of the Eurozone this past weekend looks to set the course for a rocky trading week for the common currency. Greece, again, is at the forefront of the news on two separate fronts. First, the Greek government and its private bondholders appear closer to a deal which would see the creditors take a haircut of more than 70% and exchange maturing bonds with a coupon rate considerably below 4%, which they previously insisted would be their limit.
On the OpenBook, traders would appear to somewhat less optimistic of the agreement and have opened up 2 short positions in the EUR/USD pair to every 1 long. After making a 4.75% profit on a closed sell, guru Hschinner also opened up one short which is targeting 1.2932, and holds two other shorts which target the 1.26 range. Despite the triggering of a stop over the weekend which resulted in a 90% loss, this guru is still on track to record a 100+% profit for the last three months, and 163% gains in the past six months.
The Euro-Dollar is currently trading higher at 1.3149; OpenBook guru pyruss, who opened several long positions on Friday’s dip, says he has a feeling that the pair could correct at 1.2900 or below which would play into the numerous shorts he also holds open. Since closing out his short positions, guru pawelskrzypek has placed over a dozen buy orders and is just waiting for the momentum to reverse to see those trades actualized.
Also over the weekend, raising the ire of several Greek officials, was a proposal put forth by the German government which suggested that Greece’s budget should be overseen by an outside party as a condition to the next bailout loan. The Greek finance minister responded to that with anger, saying that such a move would improperly compel his countrymen to choose between “national dignity” and “financial assistance.”
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