Experts of Citibank assure that eurozone is going to collapse in the nearest future. The Head of ECB Mario Draghi does not share such opinion, being certain that eurozone is “indestructible”. Talks are mostly centered on Greece, for the likelihood of its quitting the eurozone has rapidly increased lately.
American Citi Bank supposes that in 12-18 month such likelihood will rise from 50 to 90 percent. The bank explained that it is rather pessimistic about European crisis. Economists are certain that in several years Greece will not be a part of eurozone, and a considerable part of sovereign bank debt of Portugal , Ireland, Italy, Spain , and Cyprus will be restructured.
Economists predict Italy and Spain to be provided with official help from European Union and International Monetary Fund, taking into consideration the fact that Madrid has already appealed for help.
According to Financial Director of largest bank in Germany Deutsche Bank Stephan Krause, over its 13-year history common European currency has never been so uncertain. German banks are getting ready to worse outcome that may lead to Greece quitting the eurozone.
However, there is an opposite opinion of the Head of ECB Mario Draghi, who is determined to do his best to preserve euro, which he supposes to be indestructible. He believes that eurozone has reached much progress in the course of last six months.
Analyst of UFS Investment Company Dmitryi Nazarov supposes that, despite all attempts of EU to find the way to leave Greece a part of eurozone, it will not happen.
At this point it is not clear what Greece wants. Many financial experts of Greece suppose that the country will have quicker recovery within eurozone, rather that out of it. However, if the country returns to its own currency, it will get the change to hold independent monetary policy, which will help it to fight crisis.
Such instability will lead to the situation when bond yield of southern European countries will rise, which will close the market of foreign borrowing for them.
It is also perfectly clear that if Greece quits eurozone, EURUSD currency pair will fall. Standards of living will also fall. Considerable part of the country’s income comes from tourism. If drachma is unstable, the inflow of tourist will drop rapidly.
Today euro future has shown a rising impulse, having risen to contract 1.2282, 28831 lot. Priority is given to buying from a pullback, as stated by the Analytics Team of :
- hint: rising volume at current price;
- prices are counted for spot market.
