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Euro Rally Loses Steam

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  • Description

    BBH global head of currency strategy Marc Chandler gives his outlook for the euro.

  • Duration 3:35
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A much -- you.

Five -- -- the Euro erasing earlier gains offered a deal was announced yet another -- to cut Greece's debt and clear the way for its next aid payment for right now the euros you can see.

Did touch on 130 earlier today 12932.

For moral of this I'm joined by -- child look.

Global head of currency strategy at brown Brothers Harriman -- thank you for being here.

So we -- -- -- may get a boost with this latest news on Greece actually getting this next round of help assuming that the parliaments in question agree.

Problem but the only.

Very briefly touched on the 113 and fell back again when you see the Euro going.

I think -- -- Iraq and we may raise -- -- and markets the office sometimes well we often by numerous other facts right and we -- do have agreed deal three or four times already.

And so of course I mean it to turn on Tuesday eleven profit taking -- -- said and done.

-- your hair holding above 1291 point 930 some change yeah it's it's still fairly resilient I think -- have to make a new high type -- get above 130.

I think people are changing the focus now now that they've kicked the can have -- little bit more for Greece -- -- can focus again back on the US fiscal cliff.

-- most recent comments coming from Washington despite some Republicans pledges.

Getting up to pledge to about taxes rides than I don't see any have resolution anytime soon so we suspect it could be brinkmanship game if you go down to a wider maybe -- laughter.

Interest thing -- -- in Europe to just a little bit Spanish political situation is interest thing no doubt and because mr.

rajoy is really gotta battle on his hands -- only trying to get back.

Handle on the economy but also the -- the fractious.

And politics of these so break -- regions which for now is staying in place but how does this -- impact.

Going forward especially with regard to the Euro in the -- now -- Greece.

For the time being is being taken care of what you see going.

I think that the election this past weekend in Catalonia with the large constant part of faith and everything's being -- -- -- -- this one region yep and I think that the election results beat the -- -- -- the president of regent.

Head who advocated this election snap election I think you get quite what he -- he lost about 20% of the seats -- and so I think it will -- regular market are afraid of eighty Centre right nationalist coalition with the senate left the trial was -- -- Adriana.

Is a strong independent Catalonia right -- -- this again everything else including austerity.

So I think -- -- -- prime minister they've always had to renegotiate -- to regions especially Catalonia I haven't abetted.

It is division of the tax revenue.

I think -- a bigger picture the issue is when -- Spain formally ask for aid.

And many people thought it would take place already yup it was -- way about.

My best guess it -- take place until leader in Q1 next year when Spain has its record refinancing has to do.

And that I think is when that a weak economy.

-- your safety and rising -- have to sell more paper and that's and they have forced him to go to vehicle to be go get the gonna get that money -- data out.

Quickly with a fiscal cliff what impact of any doesn't have on the dollop.

-- the short run probably nothing as we we watching it.

I think people are a bit hesitant about getting to longer dollar -- this case to short the Euro yup but I think -- in a bigger picture I think that I seriously as a win win situation for the dollar.

We go over the fiscal cliff -- bad news the world's biggest economy headed for another recession.

I think the dollar benefits as a safe haven -- and if we avoid going -- the fiscal cliff we're -- -- -- cliff for a short period of time right and I think people begin focusing on the US again as growth differentials because Europe we know it's still in recession.

I think a win win situation for the dollar but we have to get through this correction first -- -- speak correction to get through all right much on the thank you so much of thing to do appreciate it thank you that's.

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