Greece off front pages leaves EUR at risk - BNP Paribas

FXStreet (Bali) - According to the FX Strategy Team at BNP Paribas, with Greece is likely to fade into the background once again as a driver for global markets, EUR is likely to resume its vulnerability tendencies.

Key Quotes

"Greece made its bond payment to the ECB Monday and cleared its arrears to the IMF after the EU countries agreed on a bridge loan Friday."

"Negotiations on a long-term plan still face a difficult road ahead, but Monday’s payment was viewed as the principal event risk for markets heading into Q3 and with this now behind us, Greece is likely to fade into the background once again as a driver for global markets."

"We think this leaves the EUR vulnerable as short positions will be rebuilt and Euro investor appetite for foreign bonds should pick up again. Balance of payments data released Monday showed outflows into foreign bonds picking up in May despite stress in global bond markets already building during that month."