By Chris Becker
There’s a valid reason on our screens this morning why most FX providers upped their margin requirements or even stopped trading in Euro recently, as the union currency was walloped in very early Monday morning trading. The failure to reach an agreement in Greece has seen all the major USD currencies gap down at least 1% or more as it becomes clear the beleaguered country will suffer the fate of “creditor wins, debtor goes to wall” in this post-capitalism era.
Recapping Asia first, where over the weekend we had news that Chinese authorities cut rates again by 0.25%, so-called for stabilising the economy, but in reality to shore up the falling over edifice that are the mainland stock markets. The Shanghai Composite gapped down on Friday and sold off all day, falling over 7% to just below 4200 points, capping off a very poor week and coming right back to terminal support. If that late April/early May level of 4000 is taking out, watch out below:
