Forex Flash: Greece tail risks likely to remain - Westpac

FXstreet.com (Barcelona) - With Moody's catching up on earlier S&P's downgrade on France's government bonds from Aaa to Aa1, and EURUSD currently bouncing again above 1.28 after initial fall to 1.2764 session lows following the downgrade news, later on Eurogroup meetings are expected to shed some light over the EZ and Greece's future. "Even if near term funding needs [for Greece] are met," New York based analyst for Westpac Richard Franulovich says, "the 'good news' for Europe will not likely last."

Richard thinks that "This week's advance EZ November PMIs are likely to fall short of expectations if the earlier German ZEW is anything to go by," the analyst notes, adding: "With long term Greek funding needs unlikely to be clarified and the ranks of the governing coalition thinning Greece will remain a tail risk for many months yet," Mr Franulovich concludes.