Credit Suisse: Greek default risk and the EUR/USD risk-reward trade – eFXnews

FXStreet (Barcelona) - The Research Team at Credit Suisse, sees the ongoing Greek default risk and outlines how this has impacted EUR/USD’s risk-reward from a trading perspective, as noted by eFXnews.

Key Quotes

“At least for the next month, the market seems clearly in two minds as to whether to treat it as a pro or anti-risk currency. Does it rally if Greek risk is resolved given that European risky assets would do well, or does it perversely go lower as volatility and VaR levels fall and the near-term risk of short covering squeezes dissipates? As long as these questions remain hard to answer, immediate risk-reward for EUR positioning is unappealing"

"From a longer-term perspective, we continue to feel that EURUSD will eventually move lower in line with a stalling out of positive data momentum in the euro area just as the US data cycle has improved"

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