Shaun Osborne, Chief FX Strategist at TD Securities, views that EUR/USD’s rebound after the sharp dip post ECB’s decision to curb Greek banks’ access to funding might cap around 1.1480/90.
Key Quotes
“EURUSD dipped sharply late yesterday on news that the ECB had decided to curtail Greek banks’ access to cheap funding. But the EUR has recovered overnight and is trading back close to levels prevailing late yesterday before the announcement. “
“The decision changes little immediately perhaps but pressure on Greek bank shares and bank bonds today clearly shows that investors are wary of the potential impact of the ECB’s decision which clearly turns the heat up on the new Greek government to co-operate with the Troika.”
“Uncertainty has increased a notch at least and despite the EUR’s rebound so far today, the move may not extend that much more for the moment.”
“Intraday, we think EURUSD gains will struggle to extend above 1.1480/00.”
Key Quotes
“EURUSD dipped sharply late yesterday on news that the ECB had decided to curtail Greek banks’ access to cheap funding. But the EUR has recovered overnight and is trading back close to levels prevailing late yesterday before the announcement. “
“The decision changes little immediately perhaps but pressure on Greek bank shares and bank bonds today clearly shows that investors are wary of the potential impact of the ECB’s decision which clearly turns the heat up on the new Greek government to co-operate with the Troika.”
“Uncertainty has increased a notch at least and despite the EUR’s rebound so far today, the move may not extend that much more for the moment.”
“Intraday, we think EURUSD gains will struggle to extend above 1.1480/00.”
