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Barclays: All eyes on Greece for EUR ahead of euro area GDP – eFXnews

FXStreet (Barcelona) - The eFXnews Team shares Barclays’ view of remaining short EUR/USD ahead of the euro area Q4 GDP estimate, with Greek risks expected to keep the pair under pressure.

Key Quotes

“Attention will focus on the Eurogroup meeting (Wednesday), where discussions will revolve around the design and implementation of a program of further financial aid for Greece.”

“With the Greek proposal to find a bridge solution to extend negotiations until the end of May now looking rather unrealistic, we see heightened risks of a Greek exit and an EMU crisis.”

“In terms of data, we expect the euro area Q4 flash GDP estimate (Friday) to print at 0.2% q/q, in line with consensus expectations.”

“As a result, we recommend being short EURUSD as we expect a significant political risk premium to become embedded in the EUR."

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