8 Jul 2015
Credit Suisse: Grexit risk underpriced in the euro – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Suisse believes that markets are closer to price in a positive Greek outcome than a negative one.
Key Quotes
“We see a number of potential rationalizations for the muted impact of Greece, but we are cautious that these could signal complacency at this stage. In particular, the EUR’s emerging status as a funding currency and its stretched short positioning have certainly played a role in the currency’s resilience. We, however, see signs that both factors might be soon running out of steam.”
“We acknowledge the situation is highly uncertain and that the potential for a deal is not fully exhausted. Official commentary post-referendum from both the Greek side and creditors have been relatively co-operative.”
“We see also potential for a number of “grey” scenarios, where perhaps some temporary bridge deal is reached to avoid immediate default. As such, the probability of positive resolution is not 0%, but it is certainly not high, in our view. However, our perception is that the market is closer to pricing a positive than negative outcome."
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“We see a number of potential rationalizations for the muted impact of Greece, but we are cautious that these could signal complacency at this stage. In particular, the EUR’s emerging status as a funding currency and its stretched short positioning have certainly played a role in the currency’s resilience. We, however, see signs that both factors might be soon running out of steam.”
“We acknowledge the situation is highly uncertain and that the potential for a deal is not fully exhausted. Official commentary post-referendum from both the Greek side and creditors have been relatively co-operative.”
“We see also potential for a number of “grey” scenarios, where perhaps some temporary bridge deal is reached to avoid immediate default. As such, the probability of positive resolution is not 0%, but it is certainly not high, in our view. However, our perception is that the market is closer to pricing a positive than negative outcome."
This content has been provided under specific arrangement with eFXnews.