EUR/USD dam might burst this week – FXMR

The impressive US nonfarm payrolls aren’t enough to put an upside on global confidence, while there is a Greek crisis: “Once again all eyes are concentrated on Greece where the debt negotiations remain fraught and on a knife‐edge”, saysGavin Grier-Rees, analyst at FXMR, evidencing the market sentiment “as if a deal to restructure debt is inevitable”.

FXMR analysts believe German is pushing Greece to default as they’re bailout conditions are “politically impossible”. Portugal will be markets’ next target, with contagion also into Italy and Spain, followed by France.

Grier-Rees points to 1.1250 as the 3-month forecast for the EUR/USD, which trigger to the downside would be a close below 1.3030 to target 1.2625 next.

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