Greg had the headlines here: ECB lifts waiver on Greek government debt as collateral
And the euro is being sold heavily on the news. I’ve said this going on a million times already, but at this time of day the thin liquidity in the market can see moves exacerbated.
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The news out of the ECB may be nothing more than part of the negotiation process, or, it may not. The thing is, if you think the news is of minor consequence and would like to fade the move (at this time of day) you may very well be ‘right’ but the market could well move against you anyway (as it is doing).
We have seen trading stops taken out below 1.1400 and that cascade has fed through to an extension of the fall down to 1.1340 and thereabouts.
