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29 Dec 2014
EUR on verge of stabilising? - Scotiabank
FXStreet (Guatemala) - Eric Theoret, Currency Strategist at Scotiabank noted the current conditions surrounding the Euro.
Key Quotes:
"EUR is quiet, consolidating just below 1.2200 and flirting with a break below the recent Dec 23 low at 1.2165 as market participants focus on the emergence of renewed political risk in Greece”.
“The failure of a third and final presidential election shifts the focus to a parliamentary election expected to be held in late January”.
“The timing of the election will likely complicate the ECB’s considerations ahead of the Jan 22 policy meeting, given that the Greek political debate is centered on debt restructuring."
"EUR technicals are bearish, however, momentum indicators hint to stabilization. We look to the 9 day MA (1.2229) as a level of potential near term resistance, with expectations of further weakness and fresh lows below the Dec 23 low 1.2165."
Key Quotes:
"EUR is quiet, consolidating just below 1.2200 and flirting with a break below the recent Dec 23 low at 1.2165 as market participants focus on the emergence of renewed political risk in Greece”.
“The failure of a third and final presidential election shifts the focus to a parliamentary election expected to be held in late January”.
“The timing of the election will likely complicate the ECB’s considerations ahead of the Jan 22 policy meeting, given that the Greek political debate is centered on debt restructuring."
"EUR technicals are bearish, however, momentum indicators hint to stabilization. We look to the 9 day MA (1.2229) as a level of potential near term resistance, with expectations of further weakness and fresh lows below the Dec 23 low 1.2165."