20 Mar 2015
Greece coming with good news?
FXStreet (Guatemala) - Derek Halpenny, analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that while the ECB remains centre stage in explaining the demise of the euro, the lingering uncertainty over the situation in Greece is playing a role too.
Key Quotes:
"Hence, the euro may gain some support from the comments from Greece’s PM ,Alexis Tsipras who stated after meeting EU leaders that talks with the euro-zone were “back on track” having been derailed earlier. All sides of discussions were aiming to get full financing to Greece restored as soon as possible."
"In terms of data today, we will be looking closely at the details of the balance of payments data from the euro-zone."
"The data is for January when the ECB finally confirmed the start of QE in the euro-zone and it will be interesting to see how active euro-zone investors were in shifting funds abroad in response to the announcement."
"Yields plunged in Europe of course and we suspect we will see early evidence of portfolio rebalancing as investors looked abroad to pick up much needed yield. However, TIC data from the US has already shown net selling of UST bonds in January to the tune of USD 55bn – so euro-zone investors didn’t shift funds there in January. We may have to wait until February to get a full picture."
Key Quotes:
"Hence, the euro may gain some support from the comments from Greece’s PM ,Alexis Tsipras who stated after meeting EU leaders that talks with the euro-zone were “back on track” having been derailed earlier. All sides of discussions were aiming to get full financing to Greece restored as soon as possible."
"In terms of data today, we will be looking closely at the details of the balance of payments data from the euro-zone."
"The data is for January when the ECB finally confirmed the start of QE in the euro-zone and it will be interesting to see how active euro-zone investors were in shifting funds abroad in response to the announcement."
"Yields plunged in Europe of course and we suspect we will see early evidence of portfolio rebalancing as investors looked abroad to pick up much needed yield. However, TIC data from the US has already shown net selling of UST bonds in January to the tune of USD 55bn – so euro-zone investors didn’t shift funds there in January. We may have to wait until February to get a full picture."