Euro to be driven by the Greek negotiation timetable

10 February 2015, 13:55
Andrius Kulvinskas
0
101
Dean Popplewell, Director of Currency Analysis at MarketPulse, comments on the effect on Euro from the ongoing Greek crisis, and from a probable Grexit scenario.

Key Quotes

“The current prospects for the single currency will continue to be driven by the very tight timetable to negotiate a new support package for Greece. The market is not willing to throw “all in” at current price levels (€1.1290). The risk/reward does nothing for the current odds.”

“The EU continues to take a tough line with Greece ahead of key meetings. Eurogroup Finance Ministers meet tomorrow before the EU Leaders’ summit on Thursday. It does not end there; further Eurogroup meeting next week will follow these.”

“Spillover effects to the Eurozone as a whole have been limited with some tension already having been alleviated after independent Greeks Party Kammenos (part of ruling coalition) stated that the government has a plan “B” if the EU remained rigid on any agreement.”

“Nevertheless, if Greece were to leave the Eurozone it would materially increase the downside risks for the EUR in the near term and threaten financial stability in the union.”

“The single currency is again retesting below the psychological €1.1300 handle, not with conviction, just trepidation with stellar momentum as the market heads stateside.”
Share it with friends: