6 Jan 2015
Focus returns to Greece as Berlin and Paris toughen their rhetoric – Danske
FXStreet (Barcelona) - The Danske Bank Research Team notes that focus again shifted to Greece after France and Germany increased pressure on Athens to abide to the terms of its bailout programme, further suggesting that Greece will remain a source of volatility in the coming weeks.
Key Quotes
“Concerns about a potential Greek exit from the euro zone following the failed presidential election on 29 December took centre stage again yesterday, causing European peripheral government bond markets to sell off.”
“In separate statements, France and Germany increased pressure on Athens to abide to the terms of its bailout programme. Notably, French President Hollande raised the possibility of Greece leaving the euro-bloc, echoing unconfirmed reports over the weekend that Berlin is open to a Greek exit and that any fallout would be manageable.”
“With the tough rhetoric likely to continue ahead of the 25 January national elections, Greece will remain a source of volatility in the coming weeks, though prospects of ECB easing should keep risks contained, in our view.”
Key Quotes
“Concerns about a potential Greek exit from the euro zone following the failed presidential election on 29 December took centre stage again yesterday, causing European peripheral government bond markets to sell off.”
“In separate statements, France and Germany increased pressure on Athens to abide to the terms of its bailout programme. Notably, French President Hollande raised the possibility of Greece leaving the euro-bloc, echoing unconfirmed reports over the weekend that Berlin is open to a Greek exit and that any fallout would be manageable.”
“With the tough rhetoric likely to continue ahead of the 25 January national elections, Greece will remain a source of volatility in the coming weeks, though prospects of ECB easing should keep risks contained, in our view.”