The euro is losing weight
22.06.2015
On Monday, the main currency pair is moderately reduced, as long as the markets are discussing the Greek news.
The subject of Greece will be the main one this week for the capital markets. How could it not be, when for the third time in five years, Athens is walking on the edge and is not particularly worried about looking down?
On Monday night Athens presented another, updated reform plan to the European lenders, which should help the country avoid a default. Sources in the media say that the strategy has suggestions for reforming both the financial sector and the pension system. The issue with the pension sector was previously the cornerstone for Greece and the European Commission. It is now known that the new Greek proposals could save up to 1% of the CAP starting from the new year. If so, then this is tremendous progress.
Today, the emergency EuroSummit is getting together, where old-world leaders will discuss the entire package of news accumulated to date. If the diplomats will find a way to remove the likelihood of a Greek default, the EUR will rise sharply in the coming days.
With everything else, today the European Central Bank decided to increase the maximum volume of bank financing of Greece in the framework of the ELA (emergency liquidity assistance). This move is the third one in five trading days, and even makes you wonder. There is a feeling that investors have cleaned out the entire stock of finance from banks, they do not even need to sanitize - there's just emptiness and echo.
In general, all the attention is on Greece.
And if Europe wanted to sink Athens, it would have done it at least twice - in 2010 and 2012. So, for now not all is so sad.
RoboForex Analytical Department
The subject of Greece will be the main one this week for the capital markets. How could it not be, when for the third time in five years, Athens is walking on the edge and is not particularly worried about looking down?
On Monday night Athens presented another, updated reform plan to the European lenders, which should help the country avoid a default. Sources in the media say that the strategy has suggestions for reforming both the financial sector and the pension system. The issue with the pension sector was previously the cornerstone for Greece and the European Commission. It is now known that the new Greek proposals could save up to 1% of the CAP starting from the new year. If so, then this is tremendous progress.
Today, the emergency EuroSummit is getting together, where old-world leaders will discuss the entire package of news accumulated to date. If the diplomats will find a way to remove the likelihood of a Greek default, the EUR will rise sharply in the coming days.
With everything else, today the European Central Bank decided to increase the maximum volume of bank financing of Greece in the framework of the ELA (emergency liquidity assistance). This move is the third one in five trading days, and even makes you wonder. There is a feeling that investors have cleaned out the entire stock of finance from banks, they do not even need to sanitize - there's just emptiness and echo.
In general, all the attention is on Greece.
And if Europe wanted to sink Athens, it would have done it at least twice - in 2010 and 2012. So, for now not all is so sad.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.