FXStreet (Edinburgh) – Analysts at Deutsche Bank see no compelling reason to buy the pair for the time being.
Key Quotes
“The worst case scenario, we have been staring at, notably Grexit, has not hurt the EUR much for now, while the best case scenarios (a negotiated settlement) are not a great reason to buy the EUR either, not least because it will be tough to reach a deal that has long-term credibility”.
“Another feedback loop from the market’s relative sanguine risk response to recent Greek events is that it means Greece should have marked less impact in reducing the Fed’s probability of tightening this year”.
“The market has already scaled back Fed expectations of a 25bp September tightening to 24% and a December first 25bp tightening to 83%”.
“The good news for the USD is that the scale back in Fed expectations will probably not come down much more without weaker US data, even under a slow drift toward Grexit”.
(Market News Provided by FXstreet)