Euro Pop…Sort Of

Eurodollar from 5PM last night
Eurodollar from 5PM last night

The euro ripped higher last night on news that New Democracy party was taking a lead in the polls. The speculation is that they may actually win in the June elections. It’s too early, but the euro and Greek stocks liked it.

Earlier, Athens Stocks were up 7.15%, Banks surged 7.14% – Alpha 11.45%, NBG 7.44%, Piraeus 8.53%, Eurobank 8.96%

The euro however, is currently trying to fill the opening gap up from the open last night at 5PM.

Four polls published Sunday reversed previous trends to indicate that conservative New Democracy could come first in the June 17 vote, slightly ahead of the anti-austerity radical left Syriza party. Although the conservatives would still fall short of a governing majority, the surveys suggested they could form a coalition government with socialist PASOK, which have also pledged to stick to Greece’s austerity commitments.

Planet earth and various solar systems are short the euro. It will be interesting to see how any perceived good news going forward will squeeze the euro short trade. Again, it’s still early in the game and a thin tape.

Long $FXE

$EURUSD $UUP $SPX

Joe Donohue

Joe is a full time trader with 25 years experience. He is a senior contributor and investor in Stocktwits and has been seen on CNN Money and quoted in Marketwatch, Forbes, Reuters, NY Times and Wall Street Journal.