20 Feb 2015
Failure to reach an agreement might be significantly negative for EUR – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, shares the probable scenarios for the EUR on the Eurogroup-Greece discussion outcome.
Key Quotes
“A failure to reach an agreement by the end of this week will likely see the euro come under increased selling pressure in the coming weeks.”
“Alternatively, a last minute agreement could prompt a temporary relief euro rally although it would likely be only modest.”
“The relative economic fundamental justification for a weaker euro will remain in place if Greece remains in the euro-zone.”
“The reaction function for the euro could prove more asymmetrical in that a failure to reach an agreement is likely to result in a larger and more sustained move (lower) for the euro.”
Key Quotes
“A failure to reach an agreement by the end of this week will likely see the euro come under increased selling pressure in the coming weeks.”
“Alternatively, a last minute agreement could prompt a temporary relief euro rally although it would likely be only modest.”
“The relative economic fundamental justification for a weaker euro will remain in place if Greece remains in the euro-zone.”
“The reaction function for the euro could prove more asymmetrical in that a failure to reach an agreement is likely to result in a larger and more sustained move (lower) for the euro.”