26 May 2015
EUR/USD: Grexit concerns weigh on the euro - Scotiabank
FXStreet (Guatemala) - Eric Theoret, CFA, CMT Currency Strategist at Scotiabank noted that the EUR is weak.
Key Quotes:
"The focus is squarely centered on Greece with emerging signs of contagion across European bond markets as we note a divergence between core and peripheral yields (middle chart). The four IMF payments due between June 5 and 19 aggregate to a total of €1.6bn and there is a growing concern about Greece’s ability to meet this obligation."
"Official commentary appears to centre on the market impact of various default outcomes, with ECB GC member Noyer suggesting a concentrated impact limited to Greece, while Bank of Italy Gov. Visco has highlighted concerns of broader destabilization."
Key Quotes:
"The focus is squarely centered on Greece with emerging signs of contagion across European bond markets as we note a divergence between core and peripheral yields (middle chart). The four IMF payments due between June 5 and 19 aggregate to a total of €1.6bn and there is a growing concern about Greece’s ability to meet this obligation."
"Official commentary appears to centre on the market impact of various default outcomes, with ECB GC member Noyer suggesting a concentrated impact limited to Greece, while Bank of Italy Gov. Visco has highlighted concerns of broader destabilization."