Euro Periphery a Buy to Strategists Seeing Greek Resolution
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No matter how dreadful the headlines on Greece’s debt crisis get, strategists at some of the world’s biggest banks remain optimistic a deal will be reached -- and are making trade recommendations accordingly.
Investors should buy the dollar against the franc because Switzerland’s currency, traditionally a haven, may weaken as the risks of a Greek default abate, according to Credit Agricole SA. It says a looming U.S. interest-rate increase combined with potential policy easing by the Swiss would also play a part. Societe Generale SA recommends bonds from the euro-zone periphery because governments will “bend over backwards” to accommodate the region’s most-indebted member.