3 Jul 2015
EUR/JPY: Watch downside on Greece - BNP
FXStreet (Barcelona) - Analysts at BNP Paribas noted risks to the downside on Greek referendum and safe haven Yen.
Key Quotes:
"A short EUR/JPY position also includes an element of a tail-risk hedge. Like EURUSD, EUR/JPY appears significantly overvalued according to 2y real rate spreads".
"A surprise ‘no’ vote would likely cause a sharp risk-off event similar to that of Monday morning (29 June). In this situation the EUR would drop sharply and the JPY would benefit as a safe haven, especially as the market is not currently running a net long JPY exposure."
Key Quotes:
"A short EUR/JPY position also includes an element of a tail-risk hedge. Like EURUSD, EUR/JPY appears significantly overvalued according to 2y real rate spreads".
"A surprise ‘no’ vote would likely cause a sharp risk-off event similar to that of Monday morning (29 June). In this situation the EUR would drop sharply and the JPY would benefit as a safe haven, especially as the market is not currently running a net long JPY exposure."