16 Jun 2015
EUR/USD: looking to the Fed – TDS
FXStreet (Barcelona) - According to FX Strategists at TD Securities, the FX markets remain on hold in spite of the ongoing Greece scenario, and awaiting the Fed Meeting and rate guidance.
Key Quotes
“Currency markets continue to sit on their hands watching Greek headlines from afar and ahead of tomorrow’s Fed meeting. While the current situation in Europe should be negative for the common currency, markets are reluctant to make a bet ahead of the FOMC decision.”
“The more important issue with Greek talks has less to do about Greece and more to do with the precedent it would set if it did leave the Eurozone for the other (and larger) peripherals (such as Spain). But until the Fed tomorrow, we expect more stale price action in EURUSD. And, with summer markets looming it may be some time before the primary trend—which we still see as lower—reasserts itself. There are reports however, that Eurozone officials will hold an emergency Greece summit over the weekend so stay tuned.”
Key Quotes
“Currency markets continue to sit on their hands watching Greek headlines from afar and ahead of tomorrow’s Fed meeting. While the current situation in Europe should be negative for the common currency, markets are reluctant to make a bet ahead of the FOMC decision.”
“The more important issue with Greek talks has less to do about Greece and more to do with the precedent it would set if it did leave the Eurozone for the other (and larger) peripherals (such as Spain). But until the Fed tomorrow, we expect more stale price action in EURUSD. And, with summer markets looming it may be some time before the primary trend—which we still see as lower—reasserts itself. There are reports however, that Eurozone officials will hold an emergency Greece summit over the weekend so stay tuned.”