12 Feb 2015
Greece uncertainty to keep euro on the defensive – KBC
FXStreet (Barcelona) - The KBC Bank Research Team comments that the Eurogroup meeting failed to arrive any real conclusions, and looking ahead, the increased uncertainty will likely keep the euro on the defensive and bunds underpinned.
Key Quotes
“Overnight, the Euro group meeting as expected failed to reach an agreement on Greece. They didn’t even find common ground to agree a blueprint/working base for Monday’s (Feb 16) regular Euro group meeting.”
“President Dijsselbloem said: “It was my ambition to agree on the steps on the next couple of days so that we could spend them well. Unfortunately we haven’t been able to do that so we’ll continue on Monday and move on from there.” The brief official statement confirmed that “there are no real conclusions”.”
“All in all, the outcome of the meeting managed to undershoot the low expectations. The water between Greece and Europe remains very deep.”
“Increased uncertainty should keep the Bund underpinned and the single currency in the defensive.”
“For today’s trading, we believe that a context of Greek uncertainty and stronger US retail sales is a negative for EUR/USD.”
“We hold our slight downward bias/sell-on-upticks strategy.”
“For a sustained break beyond important support levels (1.1262/24 and 1.1098) an outright Greek crisis or a further substantial rise in US bond yields is probably needed.”
“The retail sales can provide the input for US bond yields”
Key Quotes
“Overnight, the Euro group meeting as expected failed to reach an agreement on Greece. They didn’t even find common ground to agree a blueprint/working base for Monday’s (Feb 16) regular Euro group meeting.”
“President Dijsselbloem said: “It was my ambition to agree on the steps on the next couple of days so that we could spend them well. Unfortunately we haven’t been able to do that so we’ll continue on Monday and move on from there.” The brief official statement confirmed that “there are no real conclusions”.”
“All in all, the outcome of the meeting managed to undershoot the low expectations. The water between Greece and Europe remains very deep.”
“Increased uncertainty should keep the Bund underpinned and the single currency in the defensive.”
“For today’s trading, we believe that a context of Greek uncertainty and stronger US retail sales is a negative for EUR/USD.”
“We hold our slight downward bias/sell-on-upticks strategy.”
“For a sustained break beyond important support levels (1.1262/24 and 1.1098) an outright Greek crisis or a further substantial rise in US bond yields is probably needed.”
“The retail sales can provide the input for US bond yields”