The Eurogroup will convene for the umpteenth time on Saturday at 15:00 GMT for another “final†run of talks towards the June 30th double deadline.
While EUR/USD continues hugging the 1.12 level, this stability and consolidation may not last too long, especially in the case of a non-resolution, which could result in the collapse of the Greek banking system and a potential Grexit or Grexident. On this background, a few forex brokers are also getting ready.
Alpari clearly stated that due to the Greek crisis, it will set temporary limits on EUR pairs and that it could potentially set the “close only†mode. FXCM raises its margin requirements on EUR/USD, the world’s most popular currency pair, and one which sees increased competition on spreads.
Forex brokers have suffered badly from the shocking SNB decision on January 15th. It is no coincidence that these names ring a bell: FXCM suffered heavy losses while Alpari UK (separate from Alpari) shut its doors.
Once bitten, twice shy, they say.
There is still a good chance for a deal on Greece over the weekend, so these measures might not be needed. Nevertheless, it’s good to know that brokers are ready.
More:
- SNBomb – Reactions from 75 forex brokers
- 3 EUR Scenarios Our Greek Playbook – Morgan Stanley
In our latest podcast, we discuss building on the US recovery, the Greek crisis and EUR, Saudi solar and next week’s events.
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