13 Jul 2015
Case for EUR/$ down is strong, with or without Greece – Goldman Sachs
FXStreet (Mumbai) - The FX strategist team at Goldman Sachs believes that the outlook for the EUR/$ is bearish irrespective of Grexit or not.
Key Quotes
“The market seems persistently to err on the side of optimism, discounting negative developments to focus on the prospects for a positive resolution.”
“Despite the lacklustre reaction in EUR/$ so far, we continue to see mounting tensions over Greece as a catalyst for EUR/$ to go near parity, should tensions escalate further.”
“In particular, contagion to other peripheral bond markets would likely be met with a forceful ECB response, including additional asset purchases. Any acceleration in the ECB’s QE programme would weigh on EUR/$.”
Key Quotes
“The market seems persistently to err on the side of optimism, discounting negative developments to focus on the prospects for a positive resolution.”
“Despite the lacklustre reaction in EUR/$ so far, we continue to see mounting tensions over Greece as a catalyst for EUR/$ to go near parity, should tensions escalate further.”
“In particular, contagion to other peripheral bond markets would likely be met with a forceful ECB response, including additional asset purchases. Any acceleration in the ECB’s QE programme would weigh on EUR/$.”