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Investors more patient on a Greek resolution - Credit Agricole
FXStreet (Bali) - The Strategy Team at Credit Agricole, via eFXNews, notes that the lack of contagion from Greece suggests that investors are willing to wait longer for a resolution on upcoming payments to creditors if needed.
Key Quotes
"Recent comments by various Eurozone officials seemingly dashed hopes for a resolution at the next week’s Eurogroup meeting."
"Investors will increasingly focus on the upcoming Greek payments to the IMF on May 1 and 12 totalling EUR970mn".
"That said, the lack of contagion from Greece so far seems to suggest that investors are willing to wait longer for a resolution if needed."
"Indeed, recent comments by the German Finance Minister Schäuble suggested that the real ‘hard deadline’ for Greece will be the end of the current bailout extension on June 26."
"Any pick up in market anxiety thus could be temporary for now and manifest itself in EUR-weakness on the crosses."