USD/JPY bears lapping up the Greek news

FXStreet (Guatemala) - USD/JPY is currently offered and trading at 117.14 at the time of writing, with pressures coming in a risk off mode market place due to the recent updates over Greece.

USD/JPY dropped as the ECB would likely oppose a crucial part of Greek's Finance Minister Yanis Varoufakis's plan being the sale of short-term treasury bills to raise €10bn. The ECB essentially lifted the waiver on using Greek government debt as collateral. Cash is not going to come that easy for Mr Varoufakis and we await Eurozone finance ministers who are due to meet on 11 February to discuss Greece's debt proposals. Meanwhile, the Yen continues to trade bid in early Asia and the bears are lapping u as much territory as possible ahead of this weeks nonfarm Payrolls data due on Friday.

Feb 4, 2015

ECB lifts waiver on Greek bonds as collateral

The ECB has decided that it will lift the current waiver of minimum credit rating requirements for marketable instruments issued or guaranteed by Greece, not accepting the debt-stricken government bonds as collateral applicable on Feb 11th, noting that it cannot assume a successful conclusion of Greece review, adding that bank liquidity needs can be met by Greek central bank.

ECB announcement knocks down the Euro across the board

The Euro is accelerating losses across the board, in response to Greek-related headlines hitting the wires late in the US session, noting that the ECB has decided that it will lift the current credit waiver on Greek government bonds, no longer being accepted as collateral, starting on Feb 11th.