11 Feb 2015
Eurogroup meeting in focus, euro to remain volatile near-term – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, mentions that the investor uncertainty regarding the outcome of the negotiations with the greek government will keep the single currency volatile in the near-term, and further shares comments from the German finance minister pursuing a hard-line approach, and S&P’s chief rating officer regarding the ‘Greece contagion’.
Key Quotes
“Investor uncertainty regarding the outcome from ongoing negotiations between the Greek government and its international creditors is resulting in a more volatile euro in the near-term rather than clearly impacting direction.”
“German finance minister Schauble has already dampened expectations for a positive outcome for Greece at today’s Eurogroup meeting of finance ministers stating that there are no plans to discuss a new accord or give the country more time. He also added that “it’s over” if Greece doesn’t want the final tranche of the current aid programme” and that Greece’s creditors “can’t negotiate about something new”.”
“The comments suggest that the German government is still pursuing a hard-line approach reducing the likelihood of a compromise agreement.”
“The comments followed speculative media reports that the European Commission will give Greece six more months to reach an aid deal which were categorically denied by Finance Minister Schauble.”
“S&P’s chief rating officer Moritz Kraemer has stated today that concern about Greece exiting the euro-zone hasn’t spread to other countries that were in crisis the last time a Greek exit was considered.”
“The risk of contagion is seen as “not high”, although he added that the risks are still hard to assess because a country has never left a currency union before.”
Key Quotes
“Investor uncertainty regarding the outcome from ongoing negotiations between the Greek government and its international creditors is resulting in a more volatile euro in the near-term rather than clearly impacting direction.”
“German finance minister Schauble has already dampened expectations for a positive outcome for Greece at today’s Eurogroup meeting of finance ministers stating that there are no plans to discuss a new accord or give the country more time. He also added that “it’s over” if Greece doesn’t want the final tranche of the current aid programme” and that Greece’s creditors “can’t negotiate about something new”.”
“The comments suggest that the German government is still pursuing a hard-line approach reducing the likelihood of a compromise agreement.”
“The comments followed speculative media reports that the European Commission will give Greece six more months to reach an aid deal which were categorically denied by Finance Minister Schauble.”
“S&P’s chief rating officer Moritz Kraemer has stated today that concern about Greece exiting the euro-zone hasn’t spread to other countries that were in crisis the last time a Greek exit was considered.”
“The risk of contagion is seen as “not high”, although he added that the risks are still hard to assess because a country has never left a currency union before.”