Despite the Greek parliament passed the austerity measures, the Euro could still come under pressure in the coming weeks until it becomes clear what the Greek bailout package will actually entail, according to the Commerzbank research team.
"There is a danger of reversals as the final decision about a second bailout package for Greece will probably only be taken at the next meeting of the Euro Finance Ministers. EUR-USD risk reversals, at least, are not likely to recover thoroughly until then", said the Commerzbank team. Thereafter, EUR/USD should benefit from a temporary easing of the debt crisis and the weakness of the US economy.
According to the team, "A decision about raising the debt ceiling is still outstanding. Moreover concerns about the economy and the resulting expansionary monetary policy on the part of the US central bank are putting pressure on the dollar".
"There is a danger of reversals as the final decision about a second bailout package for Greece will probably only be taken at the next meeting of the Euro Finance Ministers. EUR-USD risk reversals, at least, are not likely to recover thoroughly until then", said the Commerzbank team. Thereafter, EUR/USD should benefit from a temporary easing of the debt crisis and the weakness of the US economy.
According to the team, "A decision about raising the debt ceiling is still outstanding. Moreover concerns about the economy and the resulting expansionary monetary policy on the part of the US central bank are putting pressure on the dollar".
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