Cyprus bail-out does not stop long-term problems for euro

currency-mechanism
FX markets pose challenges as outcome of aggressive government action hits markets

Although the eurozone appears to have averted an immediate crisis, long-term damage has been done by the Cyprus bail-out fiasco. Despite EU officials' claims they are not setting precedents, they are, says John Hardy, head of foreign exchange (FX) strategy at Saxo Bank.

"We should all perk up our ears when we hear Pimco saying it will reduce its exposure to euro assets," he wrote in his daily FX column last week. Hardy believes the EU risks triggering "tremendous institutional flows" as well as

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: