6 Jul 2015
EUR/USD: After Greek referendum, its a bumpy road - TDS
FXStreet (Guatemala) - Analysts at TD Securities said The key question now, from a currency market perspective, is whether the EUR is likely to weaken further from here.
Key Quotes:
"Looking forward, we think this backdrop will keep the EUR under pressure over the next several days until the next phase of political questions are answered. We think it will be harder for the EUR to repeat last week’s performance and stage a slow recovery over the next several days."
"From here, we think the threshold for recovery is now higher. A rebound in spot will require clear progress toward a deal with the creditors and a step back from the abyss of Grexit. In the big picture, that remains our core scenario, but the road may be bumpy in the interim."
"At worst, the noise and barrage of negative headlines will send the EUR lower; at best, we think it will keep a lid on gains. Importantly, the longer that markets remain in an ‘informational vacuum’, the more severe the reaction may be. As the saying goes, markets “abhor uncertainty” and the more questions that remain unanswered, the greater the pressure that risky assets are likely to face."
Key Quotes:
"Looking forward, we think this backdrop will keep the EUR under pressure over the next several days until the next phase of political questions are answered. We think it will be harder for the EUR to repeat last week’s performance and stage a slow recovery over the next several days."
"From here, we think the threshold for recovery is now higher. A rebound in spot will require clear progress toward a deal with the creditors and a step back from the abyss of Grexit. In the big picture, that remains our core scenario, but the road may be bumpy in the interim."
"At worst, the noise and barrage of negative headlines will send the EUR lower; at best, we think it will keep a lid on gains. Importantly, the longer that markets remain in an ‘informational vacuum’, the more severe the reaction may be. As the saying goes, markets “abhor uncertainty” and the more questions that remain unanswered, the greater the pressure that risky assets are likely to face."