Lee Hardman, Currency Analyst at the Bank of Tokyo-Mitsubishi UFJ, maintains negative outlook for the shared currency during the first half of 2017.
Key Quotes:
"The euro has come back under downward pressure over the past week as the market has started to focus more on rising political uncertainty in Europe including the ongoing stand-off between the Troika and Greece over the provision of further financial support. It places European officials, especially those in the Netherlands and Germany, in an uncomfortable position ahead of the upcoming elections. It is already making the market nervous that the parties may struggle to reach a timely compromise agreement before debt due in July."
"Bloomberg has reported overnight that creditors may present the Greek government today with a framework of measures required for completing the stalled bail out review as progress is sought before the scheduled euro area finance ministers meeting on the 20th February. The framework will reportedly include fiscal measures equal to 2% of GDP, which would be triggered if Greece fails to meet the budget targets agreed under its latest bail out. If the creditors fail to reach a timely agreement to extend financing to Greece, it would support our negative outlook for the euro during the first half of this year."
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