19 Feb 2015
EUR/USD: Greece headline risks looms – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that EUR is flat as Greece’s request for an extension is encouraging but uncertainty & headline risks looms.
Key Quotes
“EUR is essentially flat, trading well within its recent 1.1098 to 1.1542 range.”
“Greece continues to make headlines, with the ECB approving a further ELA increase (by €3.3bn to €68.3bn), Greece requesting a six month extension to its loan agreement and the ECB denying that it has had discussions on Greek capital controls. Should the extension be granted it would buy Greece time and ease its current funding constraints. France released worse than expected January inflation prints with headline falling –0.4%y/y.”
“We expect EUR to weaken further and are biased to be short for the medium term; we hold a 1.05 year‐end EUR target.”
Key Quotes
“EUR is essentially flat, trading well within its recent 1.1098 to 1.1542 range.”
“Greece continues to make headlines, with the ECB approving a further ELA increase (by €3.3bn to €68.3bn), Greece requesting a six month extension to its loan agreement and the ECB denying that it has had discussions on Greek capital controls. Should the extension be granted it would buy Greece time and ease its current funding constraints. France released worse than expected January inflation prints with headline falling –0.4%y/y.”
“We expect EUR to weaken further and are biased to be short for the medium term; we hold a 1.05 year‐end EUR target.”