3 scenarios for EUR after today
The euro is steady as the market players expect the euro zone and Greek finance ministers to reach a compromise on financing Greece today.
Analysts at Barclays expect more volatility ahead regardless of the outcome of the negotiations. In their view, 3 outcomes are possible:
- The lack of agreement will be a very negative scenario for EUR.
- “An agreement with significant concessions for Greece may raise the perception of risks in Spain, resulting in significantly greater downside risk for EUR”.
- If Greece accepts the austerity measures, we may see some advance of the single currency in the short term. The currency’s decline in the coming months will slow down.