EUR/USD Spread Betting Market Tumbles as Greece Announces Bailout Referendum
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EUR/USD Spread Betting Market Tumbles as Greece Announces Bailout Referendum

EUR/USD Spread Betting Market Tumbles as Greece Announces Bailout Referendum


After a month long rally against the dollar on the forex spread betting markets, the euro has managed to reverse nearly half of it in one day.

This came as Greek PM Papandreou stated that it’s fair and democratic to let the Greek public vote in referendum whether they should accept the bailout or be able to go bankrupt.

The move so surprised FX traders that the single currency lost around 440 pips.

He is clearly putting his job, the government and their funds in the hands of the citizens and only time will tell if that was the right thing to do.

The slowdown in the Eurozone has also suggested that the ECB could consider cutting rates, and that was enough to help along the sharp falls.

This morning, the EUR/USD spread betting market is trading at $1.3699 in a freefall and it will take a strong bit of positive news for the pair to bounce back any time soon.

Yesterday also saw a poor end to what was a stellar month of October for the UK 100.

At one point it looked like it would be the second best month of gains on record, but in the end it has ranked at thirteenth.

As a result the month just gone will probably be remembered more for its volatility, which October is famous for, as it marked a 17% range between the high and low.

The weakness of the last couple of sessions has followed through to today getting November off to a poor start.

Historically a strong month for the shares spread betting markets, November has not only seen more gains than declines, but the average gain is higher than the average loss.

So for those of you who are believers in history repeating itself, and are brave enough to take the view that the markets will rally through to December, this recent weakness could be presenting an attractive buying opportunity.

Certainly there will be lots of investors out there looking to see if these levels present value and, if they thought the 5400 area did a few weeks ago, they might be tempted again.

Unfortunately, as we’ve seen throughout this year, any bullish sentiment on the spread trading markets can be quashed in a flash and today it’s all about the growth and jobs story again.

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'EUR/USD Spread Betting Market Tumbles as Greece Announces Bailout Referendum' by DB, updated 01-Nov-11

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Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

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