Posts tagged ‘bailout’

February 20, 2012

FXMR:EUR/USD has higher R/R to the downside

FX Market Report believe today’s Eurogroup decision for a €130bn Greek bailout won’t be a full agreement, but a partial deal with “difficult and contentious issues unresolved until a later date”.

“Here at FXMR we remain convinced that Greece is irreparably broke and has no sustainable debt dynamic other that a default and a new beginning”, writes Gavin Grier-Rees, stating that Germany, Netherlands and Finland already voice the same opinion. “That’s why we predict ever harsher conditions will be imposed on the Greeks until they eventually are forced from the single currency. What we are seeing here is both sides trying to avoid being given the blame for ending the dream of a single currency”, he adds.

FXMR analysts believe the strong week start, high at 1.3240, was a relief move as Greece didn’t default this weekend.

“Risk‐reward must be to the downside”, with supports at 1.3110-15 and 1.3145-50. As news disappoints, last week’s lows at 1.2975 is next target.

February 7, 2012

EU leaders’ pressure on Greece is working

By FxPro

After much delay, the EU leaders became more aggressive about Greece’s future if a deal doesn’t come soon, suggesting an inevitable default as € 14.5B in bond repayments are due in March 20.

Greece has to meet Troika’s demands on minimum wage and pensions reduction, as well as public service staff, which are proving difficult to get accepted by the other parties and the Greek people that is striking nationwide against the austerity.

News are that a Greek deal is now imminent, waiting to get signed by the national leaders. However, FxPro analysts say that even with an approval, Greece will be under rigid scrutiny: “Europe and the IMF are now insisting that most of any fresh bailout money be placed into an escrow account specifically earmarked to pay off bond-holders. Also, bailout funds for Greece would only be released once Athens delivers on reform demands”, says Michael Derks.