22 Jan 2015
EUR to keep struggling on QE and Greece – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac, prefers remaining bearish on the EUR regardless of what the size of the QE will be, and adds that Greece’s election on Sunday will keep the single currency under pressure.
Key Quotes
“We are also still bearish EUR and likely to remain so regardless of the precise details of the expected ECB QE package later today. If the projected QE sum looks to be inadequate, it can always be increased.”
“Moreover, Greece’s election on Sunday is likely to produce a win for Syriza, on an anti-austerity platform that will unsettle EU lenders and thus EUR.”
“The Swiss franc meanwhile is probably best avoided if possible. Drawing a line in the sand on a major currency pair was never a permanent solution but its sudden removal has left markets scrambling to find a new equilibrium for CHF. No doubt Swiss authorities hope CHF is overshooting; they are in some trouble if not.”
Key Quotes
“We are also still bearish EUR and likely to remain so regardless of the precise details of the expected ECB QE package later today. If the projected QE sum looks to be inadequate, it can always be increased.”
“Moreover, Greece’s election on Sunday is likely to produce a win for Syriza, on an anti-austerity platform that will unsettle EU lenders and thus EUR.”
“The Swiss franc meanwhile is probably best avoided if possible. Drawing a line in the sand on a major currency pair was never a permanent solution but its sudden removal has left markets scrambling to find a new equilibrium for CHF. No doubt Swiss authorities hope CHF is overshooting; they are in some trouble if not.”