Greek Election Mess Sends EUR Back to 1.30
Allowing Greece to leave the Eurozone will be painful but its like cutting off an arm with gangrene – it just needs to be done to save the euro. In the short term, it will be painful and packed with uncertainty but in the long run, it will make the euro a healthier and more attractive currency. However in the meantime, we still have to keep a close eye on the developments to see how everything will play out. Samaras was unable to form a new government and now its Tsiparas’ turn. Most likely Tsiparas will fail as well in which case PASOK may give it a shot. At the end of day, a second general election will probably need be called in June. Between now and then, loan disbursements and austerity program implementation will suffer and the EUR/USD will remain under pressure. Read more…
