Bundesbank President Jens Weidmann and rating agency Fitch have warned of a restructuring of existing GGBs. If EMU politicians take this opportunity to clarify their “re-profiling” plans and make clear that such a way of restructuring is not an option for them, EUR-USD could recover. Otherwise, EUR-USD could lose considerably.
Ulrich Leuchtmann
Commerzbank Corporates & Markets
Foreign Exchange