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23 Jan 2015
EUR to head below parity on a Greece exit - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet, explained that the world will continue to roll around Europe as on Sunday, Greece will go into elections.
Key Quotes:
"Greece has been and remains to be, the core of the EZ crisis, the one suffering the most with austerity, the one getting the first bailout, and the one with one quarter of its population still unemployed."
"Last December, the parliament failed to elect a President, resulting in an early snap election, with Syriza opposition party leading polls for over a year, although with a shrinking margin ahead of the key day."
"Greece people are unhappy. Despite the country sees a mild, suffered recovery, the common people believes Germany, in the form of Mrs. Merkel is the one forcing them to live in poor conditions since 2010. That’s why Syriza is so popular: because its leader Alexis Tsipras, promises that as of Monday should he win, ““the people with their votes will put an end to the devastating policies of the last five years.” Among his promises, he includes hikes in low pension and minimum wages, the abolition of some taxes, and guaranteed for bank deposits."
"The election will be closely watched by financial markets as a Syriza victory could lead to a default in the troubled country, and the always feared exit from the euro zone. Furthermore, it can have a domino effect in other peripheral countries, such as Spain, Italy and Portugal. Chances of these last leaving the common union are low, but indeed will affect how they react to imposed economic conditions."
"By far, the risk of a Grexit is exponentially higher this time than at the beginning of the European crisis, implying a EUR below parity against the USD if there’s something left of the EUR after this."
Key Quotes:
"Greece has been and remains to be, the core of the EZ crisis, the one suffering the most with austerity, the one getting the first bailout, and the one with one quarter of its population still unemployed."
"Last December, the parliament failed to elect a President, resulting in an early snap election, with Syriza opposition party leading polls for over a year, although with a shrinking margin ahead of the key day."
"Greece people are unhappy. Despite the country sees a mild, suffered recovery, the common people believes Germany, in the form of Mrs. Merkel is the one forcing them to live in poor conditions since 2010. That’s why Syriza is so popular: because its leader Alexis Tsipras, promises that as of Monday should he win, ““the people with their votes will put an end to the devastating policies of the last five years.” Among his promises, he includes hikes in low pension and minimum wages, the abolition of some taxes, and guaranteed for bank deposits."
"The election will be closely watched by financial markets as a Syriza victory could lead to a default in the troubled country, and the always feared exit from the euro zone. Furthermore, it can have a domino effect in other peripheral countries, such as Spain, Italy and Portugal. Chances of these last leaving the common union are low, but indeed will affect how they react to imposed economic conditions."
"By far, the risk of a Grexit is exponentially higher this time than at the beginning of the European crisis, implying a EUR below parity against the USD if there’s something left of the EUR after this."