The euro is getting destroyed

FRANKFURT AM MAIN, GERMANY – JANUARY 21: The symbol of the Euro, the currency of the Eurozone, stands illuminated on January 21, 2015 in Frankfurt, Germany. The European Central Bank (ECB) is schedule to meet tomorrow and announce a large-scale bond buying program. The Euro has dropped sharply against the U.S. dollar in recent months. (Photo by Hannelore Foerster/Getty Images)

Just when the Athenian stock market managed to claw back the post-election losses and markets appeared to have settled, concerns about Greece have re-emerged with the ECB re-imposing previously relaxed restrictions which allowed Greek Bonds to be used as collateral by banks and others.

It caused the big dip in the Dow into the close and has crashed the Greek ETF on Wall Street.

But currency traders aren’t happy either and the euro which was making a move higher after better than expected services PMI data across the Eurozone last night has been crushed in the last hour and a half of trade.

EURUSD 15 minute chart (Go Markets, MT4)

Before the announcement, NAB Senior Economist David De Garis said there had been some small euro selling, “amid some strong words from German Chancellor Angela Merkel, injecting some Teutonic financial reality into the debate from an existing Greek bond holder’s standpoint after the Greek debt swap proposal.”

This ECB move and the 2 cent fall from the highs overnight, which has also dragged the Aussie lower, sets the scene for more volatility in markets today and tonight.