2 Jul 2015
Greek referendum in the limelight – Westpac
FXStreet (Edinburgh) - According to Sean Callow, Strategist at Westpac, Sunday’s referendum in Greece will be critical for the risk trends.
Key Quotes
“Admittedly, it is hard to ignore Greece and just assume that it will remain an issue only for Greece, the bond markets of other Mediterranean EMU members and the Eurozone more broadly”.
“It is very difficult to be confident how the standoff will play out. Opinion polls are mixed on the outcome of Sunday’s referendum. Risk assets will surely bounce sharply on a ‘yes’ vote, even if that would not translate to a quick resolution. AUD could benefit initially as equities rally”.
“A ‘no’ vote would raise the very awkward prospect of the Greek government seeking renewed negotiations while banks remained closed”.
“It could generate waves of risk aversion globally, though Greece would seek to stay in the euro (still the most likely outcome)”.
“Regardless of exactly how the political brinksmanship plays out, Eurozone business and consumer confidence should suffer”.
“The ECB will need to at least maintain the current pace of QE. So EUR/USD seems likely to emerge from this crisis considerably weaker”.
Key Quotes
“Admittedly, it is hard to ignore Greece and just assume that it will remain an issue only for Greece, the bond markets of other Mediterranean EMU members and the Eurozone more broadly”.
“It is very difficult to be confident how the standoff will play out. Opinion polls are mixed on the outcome of Sunday’s referendum. Risk assets will surely bounce sharply on a ‘yes’ vote, even if that would not translate to a quick resolution. AUD could benefit initially as equities rally”.
“A ‘no’ vote would raise the very awkward prospect of the Greek government seeking renewed negotiations while banks remained closed”.
“It could generate waves of risk aversion globally, though Greece would seek to stay in the euro (still the most likely outcome)”.
“Regardless of exactly how the political brinksmanship plays out, Eurozone business and consumer confidence should suffer”.
“The ECB will need to at least maintain the current pace of QE. So EUR/USD seems likely to emerge from this crisis considerably weaker”.