(EU) Renewed reports circulated ECB was setting up team to deal with possibly worsening of Greek crisis.
(EU) ECB’s Lipstok: ECB Refi Rate below 1.0% is technically possible but has not been discussed; ECB has never officially discussed a Greek exit from EMU.
(DE) German Bundesbank: Euro Zone can handle Greek exit but it will be challenging; Current developments in Greece are a concern; Reiterates that must not renegotiate or weaken the Greek bailout package.
How to interpret these headlines?
As we can clearly see, concerns over the EU collapse from Greece exiting the EMU have once again risen as the primary driver of Euro sell-offs today. With market flows to the safe-haven currencies and the increased volatility in European currencies, I believe EURUSD is now set to the 1.2000 level, especially if these kind of sentiments were to continue.
Therefore, I’d suggest to SELL EURUSD on any significant rallies like we saw this week. (1.2800 level).
GREXIT: Sum Of All Fears…
May 23, 2012 by 1 Comment