Forex: EUR/USD Oct 2012 target at 1.10

Forex: EUR/USD Oct 2012 target at 1.10

<!--TITOL:

Forex: EUR/USD Oct 2012 target at 1.10 - DailyFX

FITITOL--> FXstreet.com (Barcelona) - While the Hollande victory in the French election results was a predictable outcome unlikely to alter the Euro rate in the short-run, the beginning of the week saw the currency getting whacked on the surprisingly low support received by conservative pro-bailout political parties in Greek election results, which weighed heavily on investor sentiment. EURUSD touched a fresh three-month low before staging a recovery aimed to fill-up the sizeable weekly gap. Current price stays at 1.3057, about 20 pips away from Friday's close.

Christopher Vecchio, Currency Analyst at DailyFX, comments: "With Antonis Samaras and the New Democracy party unable to form a government today, the runner-up in the elections, the left-leaning Syriza, will have a go at it. If Syriza garners enough support to form an anti-bailout coalition â€" a toss-up at this point but as the Wall Street Journal noted yesterday, nearly 60% of the votes went to anti-bailout candidates, accordi ng to exit polls â€" the markets’ collective eye will turn back to Greece, which, despite having been off the radar for the past two months, very much remains a pertinent issue now that far-left and â€"right parties are coming to power."

"Given the outcome of the elections, the lackluster performance of the Greek economy, and the continued erosion of the standard of living in Greece, we expect Greece to leave the Euro-zone within the next six- to twelve-months. Accordingly, we reaffirm our October 2012 target of 1.1000 for the EURUSD."