19 Jun 2015
A Greek deal could still be problematic - BTMU
FXStreet (Guatemala) - Derek Halpenny, analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd, in respect of Greece, explained that the problem is that under the circumstances of crisis deals that have been struck in the past during the euro-zone crisis have ultimately failed to be lasting.
Key Quotes:
"That’s the risk here again now."
"We get a deal that is more along with lines of extending and pretending that gives Greece and the EU some breathing space to negotiate further. No doubt that would be met with an initial positive response given that the deal has removed the imminent risk but that positive response would fade very quickly."
"We are of the view that despite the current fragile position that there remains a widespread belief that a deal will be reached."
"But we are entering the dangerous stage of this brinkmanship and the indifference of market participants to the crisis evident by the stability of the euro is likely to be tested in the coming days."
Key Quotes:
"That’s the risk here again now."
"We get a deal that is more along with lines of extending and pretending that gives Greece and the EU some breathing space to negotiate further. No doubt that would be met with an initial positive response given that the deal has removed the imminent risk but that positive response would fade very quickly."
"We are of the view that despite the current fragile position that there remains a widespread belief that a deal will be reached."
"But we are entering the dangerous stage of this brinkmanship and the indifference of market participants to the crisis evident by the stability of the euro is likely to be tested in the coming days."