FXStreet (Edinburgh) – Jane Foley, Senior Currency Strategist at Rabobank, assessed the scenario for the comm-bloc currencies in light of the increasing jitters on Greece and China.
Key Quotes
“While the Australian economy may suffer head-on from Chinese growth concerns, the impact will be far reaching”.
“A worst case scenario for Greece regarding its future within EMU also has the potential for far-reaching consequences around the globe via its impact on Eurozone growth”.
“Even if a deal is reached on Sunday, some surveys suggest that Eurozone business confidence has already suffered a setback”.
“Both Greece and China were cited as risks in the minutes of the June 16/17FOMC. Since then both these risks have intensified”.
“We see other commodity producing countries such as the RBA, RBNZ and the BoC as potentially having to cut rates in the coming months and are bearish on these currencies”.
“We would also argue that there is more reason for central banks such as the Fed and BoE to remain in wait and see mode”.
(Market News Provided by FXstreet)