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EUR/USD: Monetary Policies Vs Greece - BofA Merrill
In a note to clients today, Bank of America Merrill Lynch outlines its latest comprehensive outlook for EUR/USD including its themes, forecasts, and risks. Themes: FED, ECB, Greece: "The Greek Referendum will drive headlines for the near-term. We believe that divergence of monetary policies is a more powerful EUR driver than Greek risks. In this context, the timing of the first Fed rate hike (September is our call) and the ECB’s tone (the market misread the ECB’s message to get used to volatility) are more important for the euro than Greek headlines. Whilst Greek headlines and deadlines are clearly urgent, and ... (full story)