18 Aug 2015
Greece: between fresh elections and ECB repayment – Societe Generale
FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, assessed the current scenario in Greece.
Key Quotes
“Endorsement of the Greek debt deal by Europe's parliaments won't make the Greek debt crisis go away, of course”.
“The next stage, after payment of the money that is due to the ECB on Thursday, will be pressure for a confidence motion in the Greek Parliament and after that, probably, fresh elections”.
“For the Euro area as a while, the focus will likely shift to the PMI data due Friday amid a sense that the region's growth rate is fading somewhat (again)”.
“None of this makes me terribly bullish of the euro, but as long as the slow drift back down in Bund yields is no faster than the move in US Treasury yields and as long as the front end of the US curve remains stubbornly range-bound (2yr swap rate at 94bp this morning), EUR/USD is going to be stuck in this range”.
Key Quotes
“Endorsement of the Greek debt deal by Europe's parliaments won't make the Greek debt crisis go away, of course”.
“The next stage, after payment of the money that is due to the ECB on Thursday, will be pressure for a confidence motion in the Greek Parliament and after that, probably, fresh elections”.
“For the Euro area as a while, the focus will likely shift to the PMI data due Friday amid a sense that the region's growth rate is fading somewhat (again)”.
“None of this makes me terribly bullish of the euro, but as long as the slow drift back down in Bund yields is no faster than the move in US Treasury yields and as long as the front end of the US curve remains stubbornly range-bound (2yr swap rate at 94bp this morning), EUR/USD is going to be stuck in this range”.