26 May 2015
Greek crisis could help strengthen JPY and weaken GBP – FXStreet
FXStreet (Barcelona) - According to Omkar Godbole, FXStreet Editor and Analyst, Greece related concerns might fuel strength in JPY on rising risk aversion, while dragging EUR and subsequently GBP lower.
Key Quotes
“An EU official was quoted saying today that no deal is likely to be reached between Greece and its international creditors by this Thursday. The official said Greece’s VAT proposal was not good enough and that no deal is expected by Thursday's teleconference with deputy finance ministers.”
“Greece is due to make a payment to the IMF on June 5th and we have repeatedly heard the Greek government complaining about the shortage of funds and increasing possibility of a default.”
“So far, the financial markets have been complacent. However, the German 10-year is showing signs of weakness today, indicating a rise in demand for safe haven German bunds. In case the Greece issue flares up, a further sell-off in the EUR/USD would also drag the GBP/USD pair lower. Meanwhile, funding currency like the Japanese Yen may gain on risk aversion.”
Key Quotes
“An EU official was quoted saying today that no deal is likely to be reached between Greece and its international creditors by this Thursday. The official said Greece’s VAT proposal was not good enough and that no deal is expected by Thursday's teleconference with deputy finance ministers.”
“Greece is due to make a payment to the IMF on June 5th and we have repeatedly heard the Greek government complaining about the shortage of funds and increasing possibility of a default.”
“So far, the financial markets have been complacent. However, the German 10-year is showing signs of weakness today, indicating a rise in demand for safe haven German bunds. In case the Greece issue flares up, a further sell-off in the EUR/USD would also drag the GBP/USD pair lower. Meanwhile, funding currency like the Japanese Yen may gain on risk aversion.”