25 May 2015
EUR/USD vulnerable to Greek rhetoric – MP
FXStreet (Barcelona) - Dean Popplewell, VP of Currency Analysis and Research at MarketPulse, believes Greece related headlines will keep EUR/USD soft in the week ahead, expecting a break below 1.0920 to pave way for 1.0819.
Key Quotes
“The single currency (€1.0970) saw some early session weakness, as the standoff between Athens and European creditors appears to have gone from bad to worse with Greece announcing that they will not have the money to repay the €1.6b to the IMF next month unless a new deal with creditors is reached.”
“Greece remains steadfast with PM Tsipras reiterating that there is a limit to what the Greek government is prepared to accept from the creditors. Even if the standoff does result in a stalemate, a national referendum is not likely to break the situation – a weekend poll shows that +59% support the government’s position, but +71% still want to keep the EUR. The rest of Europe doesn’t want to talk alternatives, as Athens needs to deliver what it promised.”
“Investors should expect the EUR to remain vulnerable to Greek rhetoric; at least until there is clarity around what’s real or not. The currency is likely to trade with risks to the downside this week as long as the EUR/USD stay’s below Friday’s high of €1.1208. A breach through €1.0920 on the downside would expose the single unit to last month’s low of €1.0819.”
Key Quotes
“The single currency (€1.0970) saw some early session weakness, as the standoff between Athens and European creditors appears to have gone from bad to worse with Greece announcing that they will not have the money to repay the €1.6b to the IMF next month unless a new deal with creditors is reached.”
“Greece remains steadfast with PM Tsipras reiterating that there is a limit to what the Greek government is prepared to accept from the creditors. Even if the standoff does result in a stalemate, a national referendum is not likely to break the situation – a weekend poll shows that +59% support the government’s position, but +71% still want to keep the EUR. The rest of Europe doesn’t want to talk alternatives, as Athens needs to deliver what it promised.”
“Investors should expect the EUR to remain vulnerable to Greek rhetoric; at least until there is clarity around what’s real or not. The currency is likely to trade with risks to the downside this week as long as the EUR/USD stay’s below Friday’s high of €1.1208. A breach through €1.0920 on the downside would expose the single unit to last month’s low of €1.0819.”