Euro’s sideways trading likely to continue
Despite a plethora of institutional analysts predicting EUR/USD would reach parity either by the end of the year or the first half of 2016, we have seen remarkably little evidence that this will materialise any time soon.
The latest deadline over Syriza agreeing and implementing further cost-cutting austerity measures has now been passed, and the response from both Greece and its potential lifesavers has been to blame each other. This month will see another €1.5 billion required to be paid back to the International Monetary Fund and €5.2 billion in short-term debt.
Yesterday Christine Lagarde, Mario Draghi, Jean-Claude Junker and Angela Merkel were all reported to have met in order to thrash out an agreed stance around Greece. The fact that no-one from Greece was there is somewhat troubling.
With such a large question mark hanging over Greece it is difficult to see what progress EUR/USD can make, and as such a continuation of its lateral move looks likely.