15 Jul 2015
ECB coming up: Press Conference and Greece - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet commented on the ECB tomorrow and subsequent press conference and took in to account the Greek debacle.
Key Quotes:
The focus then, will be the press conference, where Draghi will likely be bombarded with questions regarding Greece, particularly after the Governing Council kept the cap on Emergency Liquidity Assistance to the country unchanged in a conference call on Monday. Markets are speculating that the ECB may reconsider the cap, after the Greek parliament vote on the measures promised by Tsipras to its creditors. Ahead of a result, negotiations are beyond tough in Greece, as there are reports that 107 out of 201 Syriza central committee members are condemning Tsipras' agreement with Eurozone.
Watch the ECB Meeting Live Coverage by Valeria Bednarik and Dale Pinkert
In the meantime, the IMF has rocked Europe this Wednesday, after saying that the country needs additional debt relieve to get out of depression. In fact, the international organism has menaced to pull out of bailouts for Greece unless its European partners grant Athens a massive debt relief.
So far, Mr. Draghi has proved to have huge political skills in handling the Greek matter, but if the Central Bank decides to maintain the cap unchanged this Thursday, the local banks may have to close their doors for good, as the Greek banks have relied largely on emergency liquidity assistance. But at the same time, Draghi has stood by Greece, working in keeping the country within the EU.
Overall, the speech is not expected to be dovish, but Draghi may lighten the tone. But at the same time, there's a good chance the Central Bank decides to gradually increase Greek ELA, if the Parliament votes to pass the bill today, all of which should imply a limited EUR slide.
Key Quotes:
The focus then, will be the press conference, where Draghi will likely be bombarded with questions regarding Greece, particularly after the Governing Council kept the cap on Emergency Liquidity Assistance to the country unchanged in a conference call on Monday. Markets are speculating that the ECB may reconsider the cap, after the Greek parliament vote on the measures promised by Tsipras to its creditors. Ahead of a result, negotiations are beyond tough in Greece, as there are reports that 107 out of 201 Syriza central committee members are condemning Tsipras' agreement with Eurozone.
Watch the ECB Meeting Live Coverage by Valeria Bednarik and Dale Pinkert
In the meantime, the IMF has rocked Europe this Wednesday, after saying that the country needs additional debt relieve to get out of depression. In fact, the international organism has menaced to pull out of bailouts for Greece unless its European partners grant Athens a massive debt relief.
So far, Mr. Draghi has proved to have huge political skills in handling the Greek matter, but if the Central Bank decides to maintain the cap unchanged this Thursday, the local banks may have to close their doors for good, as the Greek banks have relied largely on emergency liquidity assistance. But at the same time, Draghi has stood by Greece, working in keeping the country within the EU.
Overall, the speech is not expected to be dovish, but Draghi may lighten the tone. But at the same time, there's a good chance the Central Bank decides to gradually increase Greek ELA, if the Parliament votes to pass the bill today, all of which should imply a limited EUR slide.