5 Jun 2015
More FX activity on Greece - ANZ
FXStreet (Guatemala) - Analysts at ANZ noted that it was an active day in FX and FI markets despite an absence of data releases.
Key Quotes:
"The euro was bid during the European morning on ongoing optimism about an agreement in Greece and the continued rout in the bund market. Given an absence of data, however, bunds recovered some poise and Dijsselbloem said his meeting with Greek PM Tsipras was useful but that remaining issues were still quite large and talks remain at an impasse."
"This sparked a pull-back in EUR/USD although the downside was contained by the IMF’s downgrading its forecast for US growth this year to 2.5% from 3.1% and recommendation that the Fed should not to raise interest rates until the first half of next year."
"The IMF also said that the dollar was marginally overvalued. Following the recovery in German bunds, fixed income markets in general had a better day. US bond yields closed on session lows and equities bathed in a sea of red ink."
Key Quotes:
"The euro was bid during the European morning on ongoing optimism about an agreement in Greece and the continued rout in the bund market. Given an absence of data, however, bunds recovered some poise and Dijsselbloem said his meeting with Greek PM Tsipras was useful but that remaining issues were still quite large and talks remain at an impasse."
"This sparked a pull-back in EUR/USD although the downside was contained by the IMF’s downgrading its forecast for US growth this year to 2.5% from 3.1% and recommendation that the Fed should not to raise interest rates until the first half of next year."
"The IMF also said that the dollar was marginally overvalued. Following the recovery in German bunds, fixed income markets in general had a better day. US bond yields closed on session lows and equities bathed in a sea of red ink."