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2 Jan 2015
Barclays: Another deterrent to EUR ownership – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes that Barclays views the ongoing political crisis in Greece as another deterrent to EUR ownership, further forecasting EUR/USD to head towards 1.07 levels in Q4 15.
Key Quotes
“Greece holds its general elections on 25 January 2015. The Syriza party is maintaining its lead, according to the recent polls, but with insufficient support for a majority government. If these polls prove correct, our baseline scenario for Greece envisages a Syriza-led coalition, possibly with some members of the PASOK and/or To Potami parties. However, we do not rule out alternative scenarios, such as a hung parliament, which could call for new general elections in 2015.”
“While the key driver of our EURUSD forecast for sustained depreciation to 1.07 in Q4 15 is diverging monetary policies, given our expectation for the announcement of QE by the ECB at its January 2015 meeting, we think this political uncertainty should provide another deterrent to EUR ownership.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Greece holds its general elections on 25 January 2015. The Syriza party is maintaining its lead, according to the recent polls, but with insufficient support for a majority government. If these polls prove correct, our baseline scenario for Greece envisages a Syriza-led coalition, possibly with some members of the PASOK and/or To Potami parties. However, we do not rule out alternative scenarios, such as a hung parliament, which could call for new general elections in 2015.”
“While the key driver of our EURUSD forecast for sustained depreciation to 1.07 in Q4 15 is diverging monetary policies, given our expectation for the announcement of QE by the ECB at its January 2015 meeting, we think this political uncertainty should provide another deterrent to EUR ownership.”
This content has been provided under specific arrangement with eFXnews.