EUR

The Greek confidence election looks susceptible to pass tonight, and could create passage within the budget bill right before the final outcome of June. Although this should really be considered a knee jerk positive for the EUR, the worry is that because this allows the following tranche in the present bailout to be compensated out, it’ll slow up the emergency for pretty much any new bailout agreed by early this summer season. So ultimately we should understand the events risk from tonight’s Greek election as a relatively small one. I am concerned that getting less EU action could mean any EUR rally is short. Selling pressure will rapidly emerge most likely because the current plan including ‘voluntary’ rollovers will be viewed as being a default by rankings agencies. Continue reading →