Back
12 Apr 2013
Forex Flash: EZ ministers meet today over Cypriot bailout - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that Euro-zone finance ministers are meeting in Dublin today and a final agreement on the bailout from Cyprus is likely to be agreed.
However, he feels that this may be complicated by the reports that Cyprus´s bailout is already about EUR 6bln short. He writes, “With Ireland holding the presidency there are also likely to be attempts to make some progress on ESM direct recapitalisation of banks, which both Ireland and Spain are pushing for but Germany is resisting. Ireland and Portugal are also looking for more favourable terms on loans, but given the uncertainty over fiscal slippage in Portugal, Ireland is likely to get more on that than Portugal. All of this is unlikely to move the markets and we expect EUR/USD to remain broadly stable, with a slight bias to the upside.”
However, he feels that this may be complicated by the reports that Cyprus´s bailout is already about EUR 6bln short. He writes, “With Ireland holding the presidency there are also likely to be attempts to make some progress on ESM direct recapitalisation of banks, which both Ireland and Spain are pushing for but Germany is resisting. Ireland and Portugal are also looking for more favourable terms on loans, but given the uncertainty over fiscal slippage in Portugal, Ireland is likely to get more on that than Portugal. All of this is unlikely to move the markets and we expect EUR/USD to remain broadly stable, with a slight bias to the upside.”