20 Feb 2015
Hope in the markets that a Greek deal will be etched out - ANZ
FXStreet (Bali) - According to ANZ Research Team, there appears to be hope in the markets that a deal will be etched out, with Thursday's rejected Greek request potentially a constructive platform from which further discussions can take place.
Key Quotes
"Competing headlines over Greek debt negotiations dominated sentiment and moves in EUR/USD. The euro received an early boost following reports that Greece’s Government had submitted a formal request for a six-month extension to its current bailout agreement which included modifications to the bailout conditions."
"Germany rebuffed the proposal noting that the proposal didn’t “meet the criteria agreed upon in the Eurogroup on Monday” and that it “aims at bridge financing without meeting the requirements” of the bailout package."
"Nonetheless, there is some hope the request by Greece may provide a constructive platform from which further discussions can take place ahead of the euro area Finance Ministers meeting tomorrow."
"Going by the reaction across asset classes (ie muted), there appears to be hope in the markets that a deal will be etched out. That seems the most likely scenario but one wonders whether Greek ideology will dominate reality and we’ll end up down a speculated ‘dirty exit’ from the euro path. No agreement means default."
"We note also overnight the ECB policy meeting Minutes showed some dissent towards QE and concerns over moral hazard. Notable was the Council’s concern over “becoming a dominant creditor of euro area governments”. The credit card has a limit.
Key Quotes
"Competing headlines over Greek debt negotiations dominated sentiment and moves in EUR/USD. The euro received an early boost following reports that Greece’s Government had submitted a formal request for a six-month extension to its current bailout agreement which included modifications to the bailout conditions."
"Germany rebuffed the proposal noting that the proposal didn’t “meet the criteria agreed upon in the Eurogroup on Monday” and that it “aims at bridge financing without meeting the requirements” of the bailout package."
"Nonetheless, there is some hope the request by Greece may provide a constructive platform from which further discussions can take place ahead of the euro area Finance Ministers meeting tomorrow."
"Going by the reaction across asset classes (ie muted), there appears to be hope in the markets that a deal will be etched out. That seems the most likely scenario but one wonders whether Greek ideology will dominate reality and we’ll end up down a speculated ‘dirty exit’ from the euro path. No agreement means default."
"We note also overnight the ECB policy meeting Minutes showed some dissent towards QE and concerns over moral hazard. Notable was the Council’s concern over “becoming a dominant creditor of euro area governments”. The credit card has a limit.