EURUSD recovered a little on Thursday after the ECB came out fighting late Wednesday night. The European Central Bank announced it would no longer allow the use of Greek bonds as collateral. Saxo Bank’s Head of FX Strategy, John Hardy, says this puts the markets into an ‘emotional’ rather than a technical mood  and traders need get used to the new norm of ‘choppy trading’.

John says there’s no immediate liquidity implications for Greek banks as they can continue to access the ECB’s ELA if needed. However, he says the message from the ECB is loud and clear and its actions dramatically raises the temperature of the situation.