Euro may drop below 1.30 to dollar: StanChart

Politics is the key thing in Greece says Sarah Hewin (senior economist at Standard Chartered Bank). Also politics seems to derail some of the reform proposals in Italy. Greece is most likely to see a coalition government and both the parties back the bailout programme. Despite positive steps by the ECB, the economy is moving into recession across the region and they see a political upset from the horizon, which could cause investors to really pull back on the risk appetite. In their view there is potential for Euro to drop below 1.30 over the course of the next few months.