FXStreet (Barcelona) – FX Strategists at TD Securities, note that the Greek fuelled uncertainty has markets positioning for EUR shorts into the weekend, and further add that focus remains on ECB ELA meeting today and emergency meeting of EU leaders on Monday.
Key Quotes
“If the better part of the week thus far had been characterized by the wait for the FOMC, the end of the week is being obviously overshadowed—dampening activity as a result—by developments (or lack of them) around Greece.”
“With no progress at yesterday’s finance meeting, it fall’s on Monday’s summit meeting of EU leaders to determine what the next step is.”
“In the meantime, focus will fall on today’s emergency ECB meeting, which is just getting underway, to determine whether to extend Greek banks more emergency liquidity after the additional EUR1.1bn in emergency liquidity assistance offered earlier in the week was deemed (by Greece) to be inadequate.”
“The decision here—whether to provide more assistance or not, thereby relieving or increasing pressure on the domestic banking system—may go some way in shaping the market’s expectations about whether any real progress is likely on Greece early next week.”
“EURUSD’s gains on the lower Fed dot plot profile earlier this week have faded and, for choice, investors who are positioning in EUR—and many are opting out of taking any view ahead of the weekend—appear to be taking the short route. A firm peak looks to be in now in the 1.1400/20 area. EUR losses should pick up below 1.1275 intraday.”
(Market News Provided by FXstreet)