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Focus on Greek elections as ECB sets limits on Greece – AceTrader

FXStreet (Barcelona) - The AceTrader Team comments on the Greek elections and ECB's stance on limiting Greece from its buying program, and further add that the focus will now shift to the Greek elections.

Key Quotes

“With the major market event of ECB massive bond purchase announcement out of the way, the next focus is this Sun's Greek election.”

“Bloomberg reported the ECB set limits on accessing its bond-buying program that will exclude Greece for at least 6 months, raising pressure on whichever party wins Jan. 25 elections to heed the demands of official creditors.”

“The ECB decision locks Greece out of the QE program until policy questions raised by the vote have been resolved. Foremost among them is the strategy of Alexis Tsipras, whose Syriza party is leading PM Antonis Samaras's New Democracy in polls after he pledged to wring substantial concessions from the so-called troika of creditors.”

“Also reported were 2 separate surveys by the Alco and Rass polling companies published Wed in Athens showed a lead of as much as 4.9 percentage points for anti-bailout Syriza party over the premier's New Democracy party.”

“Greece's next gov't will have to decide on extending the international bailout program that expires at the end of Feb, with the country set to run out of cash by the end of Jun at the latest. While voters are attracted by a Syriza platform which includes opposing the terms attached to the aid, investors have been spooked by the implications of a potential Tsipras victory.”

“The two polls by Rass n Alco gave Syriza 31.2% n 32% respectively, compared with 27% n 27.1% for New Democracy. That suggests that even if Tsipras wins, he won't have enough lawmakers for a majority in Greece's 300-seat chamber.”

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