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26 Jan 2015
EUR falls to 11-year lows after overwhelming victory by Syriza in Greece – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team notes that EUR fell to a 11-year low below $1.11 after Greek results showed an overwhelming victory by Syriza, and further cite Bundesbank’s Weidmann comments that, “Greece will remain dependant on support.”
Key Quotes
“Greek Syriza has been voted in as the first anti-bailout party to govern a euro member nation. While the victory has been anticipated going into the elections, the overwhelming 10pt margin (36-38% vs 26-28% for ruling ND) is telling of the austerity exhaustion in the eurozone periphery, which could subsequently shift the focus to the rise in similarly oriented Podemos party in Spain.”
“The final count will reveal whether Syriza will secure the required 151 seats in Parliament (halfway through counting, polls suggest 149-150), however a small right-wing Independent Greeks party has already come forward as the anti-bailout partner to Syriza, and a new govt with Tsipras as the PM will likely be finalized in the next 1-2 days.”
“Celebrating victory, Tsipras said the election marks the end of bailout agreement for Greece and cancels the program of austerity, but also pledged to cooperate with partners to achieve a "mutual solution" rather than a "destructive collision".”
“Bundesbank's Weidmann pre-empted any re-negotiation plans, stating that "Greece will remain dependant on support and it's also clear that this aid will be provided only when it is in an aid program”."
“EUR/USD fell about 50pips to 2003 lows below $1.11 at the open before paring some of those losses toward the afternoon session.”
Key Quotes
“Greek Syriza has been voted in as the first anti-bailout party to govern a euro member nation. While the victory has been anticipated going into the elections, the overwhelming 10pt margin (36-38% vs 26-28% for ruling ND) is telling of the austerity exhaustion in the eurozone periphery, which could subsequently shift the focus to the rise in similarly oriented Podemos party in Spain.”
“The final count will reveal whether Syriza will secure the required 151 seats in Parliament (halfway through counting, polls suggest 149-150), however a small right-wing Independent Greeks party has already come forward as the anti-bailout partner to Syriza, and a new govt with Tsipras as the PM will likely be finalized in the next 1-2 days.”
“Celebrating victory, Tsipras said the election marks the end of bailout agreement for Greece and cancels the program of austerity, but also pledged to cooperate with partners to achieve a "mutual solution" rather than a "destructive collision".”
“Bundesbank's Weidmann pre-empted any re-negotiation plans, stating that "Greece will remain dependant on support and it's also clear that this aid will be provided only when it is in an aid program”."
“EUR/USD fell about 50pips to 2003 lows below $1.11 at the open before paring some of those losses toward the afternoon session.”