FXStreet (Barcelona) – Jens Nordvig, FX Strategist at Nomura, presents the case for the EUR/USD trade into the ongoing greek developments.
“We closed at 1.1160 on Friday, and we could test 1.10 in early hours of trading. But the important part of the session will only begin when European markets open. The key here will be if contagion effects to peripheral markets are significant (leading to a break in bond spreads observed this year), and if equity market weakness generates sufficient hedge adjustment to push EURUSD higher.”
“Our base line is a move towards of 1.10. But no major follow though and perhaps a reversal if contagion effects turn out to be manageable without ECB intervention beyond the soft verbal intervention we already received on Sunday. And from there, all will depend on how opinion polls stack up and whether we get the Yes or the No vote next weekend.”
Jens Nordvig, FX Strategist at Nomura, presents the case for the EUR/USD trade into the ongoing greek developments.
(Market News Provided by FXstreet)