EUR current resilience might be only temporary – BTMU

FXStreet (Edinburgh) - In the view of Lee Hardman, Currency Analyst at BTMU, the ongoing resilience of the euro at current levels propped by some sort of hopes of a Greece-EU deal might prove to be only temporary.

Key Quotes

“The euro has strengthened modestly following reports yesterday that the Greek government is moving closer to reaching an agreement with its creditors to secure short-term financial support”.

“Greek Prime Minister Tsipras stated that “we are in the home stretch, close to the final agreement”. A Greek government official had also stated that they had begun drafting a Staff level Agreement which included low primary budget surpluses, no recessionary measures, a sales tax overhaul, a medium-term agreement on Greek debt relief, and a growth package”.

“The Greek official reportedly stated that a disagreement between creditors remains a problem”.

“The report has since been downplayed by European officials who have stated that there is still some way to go to secure an agreement”.

“If an agreement is reached to provide short-term financing to Greece as we continue to expect, it is likely to offer only limited and temporary support for the
euro. We continue to believe that the latest Greek developments have had little impact on the value of the euro and have mainly helped lift volatility”.