FXstreet.com (Barcelona) - While the European Commission’s Oliver Bailly
assured the markets the Greece’s deficit target will not be lowered and EU’s Juncker
said the Greece exit (aka “Grexit”) would be manageable, though carrying enormous risks, the Fitch rating agency
announced a survey (made between Jul-2 and Aug-2) that indicates market confidence in the Eurozone debt crisis’ outcome. Although some expect a breakup (5%) and others foresee a series of defaults (9%), the majority believes the Euro area will move towards fiscal union (33%) or a “muddling through” (31%). There are still 21% of surveyed that expect a couple of countries, including Greece, to leave the euro.
The EUR/USD seems to be stable at 1.2420 area after having reached as high as 1.2442 on the American opening. US consumer credit change is due to be released at 19:00 GMT after Fed’s Bernanke speech at 18:30 GMT.
“Scope remains for the move to the top of the short term channel at 1.2513, where ideally we will see failure”, wrote Commerzbank analyst Karen Jones, pointing to support at 1.2290/1.2325.