FXStreet (Guatemala) – Eric Theoret, CFA, CMT Currency Strategist at Scotiabank noted the recent turnaround in sentiment of a Greek deal on the latest market rumours.
Key Quotes:
“Tsipras is rumoured to have commented on creditors’ rejection of his most recent proposal while expressing concern about the motives underlying the rejection. The headlines have generated a risk-off response in FX, pressuring all currencies with the exception of JPY while providing support to gold.”
“The bond market reaction has shown a renewed focus on contagion risk, weighing on yields in Germany and France while simultaneously pushing them up in Italy and Spain. Equity markets have responded accordingly.”
“Headline risk is expected to remain elevated as we look to the 1pm EST meeting of euro area finance ministers ahead of the two-day EU leaders’ summit scheduled to begin on Thursday.”
(Market News Provided by FXstreet)