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29 Dec 2014
A perfect political and economic storm brewing in Greece – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Research Team share the FX performance, and note that a perfect political and economic storm is brewing in Greece after the parliament failed to select a president for the 3rd time today.
Key Quotes
“The dollar is mixed against the majors as another holiday-shortened week gets under way. The antipodeans are outperforming, while the Scandies and sterling are underperforming. The euro is trading just below $1.22, little changed despite heightened Greek political risk, while cable is holding above $1.55. Dollar/yen is trading near 120.50.”
“EM currencies are mixed. The ruble is the worst performer, down over 5% as demand from corporate tax payments wanes.”
“Greece's parliament failed for the third and last time to select a president today. Failure to do so triggers snap elections, which PM Samaras has tipped for January 25.”
“The latest polls show that the anti-austerity Syriza still enjoys a small lead in a national election. The situation is very fluid, and there is some speculation that the New Democracy could replace Samaras (one possibility is Dora Bakoyannis, whose father was a former ND Prime Minister that Samaras once helped topple), which might make an anti-Syriza coalition more likely.”
“The political situation is stalling the negotiations with the Troika, and this could have serious ramifications by the end of March. A perfect political and economic storm is brewing.“
Key Quotes
“The dollar is mixed against the majors as another holiday-shortened week gets under way. The antipodeans are outperforming, while the Scandies and sterling are underperforming. The euro is trading just below $1.22, little changed despite heightened Greek political risk, while cable is holding above $1.55. Dollar/yen is trading near 120.50.”
“EM currencies are mixed. The ruble is the worst performer, down over 5% as demand from corporate tax payments wanes.”
“Greece's parliament failed for the third and last time to select a president today. Failure to do so triggers snap elections, which PM Samaras has tipped for January 25.”
“The latest polls show that the anti-austerity Syriza still enjoys a small lead in a national election. The situation is very fluid, and there is some speculation that the New Democracy could replace Samaras (one possibility is Dora Bakoyannis, whose father was a former ND Prime Minister that Samaras once helped topple), which might make an anti-Syriza coalition more likely.”
“The political situation is stalling the negotiations with the Troika, and this could have serious ramifications by the end of March. A perfect political and economic storm is brewing.“