The euro/dollar is waiting for news from the Fed
17.06.2015
Today the main currency pair is trading not just sluggishly: it simply stands still in anticipation of the evening news.
Investors are waiting for the completion of the two-day meeting of the US Federal Reserve, which closes today. A lot will depend on the comments of the regulator - evening volatility can be strong. But I do not want to speculate and guess – we should wait for the facts.
In the meantime, let us speak about Greece, the subject of which does not lose sharpness of relevance for a long time. Representatives of the Eurogroup today said that it is still going to keep Greece in the euro zone. But for that the parties need to make serious efforts. It is, above all, about the reform package, which is expected from Athens very soon. Frankly, there are only three full days before the default, there is no money in the treasury to pay off debts, but no clear plan either. Without a new agreement between Athens and the Old World in the face of it, all the EC financial tranches will end with June.
Somehow this is all very similar to running in circles. The Greeks are running and they are so tireless and offer something completely extraneous, trying populist measures to attract attention. The European Commission are already rather tired of this marathon and requires distinct strategies - what, for example, to do with the pension system and how to get the steady budget surplus. Greece does not have answers to these specific questions.
If the package of reforms will be weak, some debt relief may be needed. Such a scenario does not exclude the International Monetary Fund. But, frankly, it would be quite beyond good and evil. This option is not desirable for either Athens or for their creditors. Germany and France will not rejoice.
A solution acceptable to both sides does not yet exist. And as soon as the Fed will report its decisions on the monetary policy and the markets will play out all the related comments, investors' attention will concentrate on Greece. It will be interesting, but worrying.
RoboForex Analytical Department
Investors are waiting for the completion of the two-day meeting of the US Federal Reserve, which closes today. A lot will depend on the comments of the regulator - evening volatility can be strong. But I do not want to speculate and guess – we should wait for the facts.
In the meantime, let us speak about Greece, the subject of which does not lose sharpness of relevance for a long time. Representatives of the Eurogroup today said that it is still going to keep Greece in the euro zone. But for that the parties need to make serious efforts. It is, above all, about the reform package, which is expected from Athens very soon. Frankly, there are only three full days before the default, there is no money in the treasury to pay off debts, but no clear plan either. Without a new agreement between Athens and the Old World in the face of it, all the EC financial tranches will end with June.
Somehow this is all very similar to running in circles. The Greeks are running and they are so tireless and offer something completely extraneous, trying populist measures to attract attention. The European Commission are already rather tired of this marathon and requires distinct strategies - what, for example, to do with the pension system and how to get the steady budget surplus. Greece does not have answers to these specific questions.
If the package of reforms will be weak, some debt relief may be needed. Such a scenario does not exclude the International Monetary Fund. But, frankly, it would be quite beyond good and evil. This option is not desirable for either Athens or for their creditors. Germany and France will not rejoice.
A solution acceptable to both sides does not yet exist. And as soon as the Fed will report its decisions on the monetary policy and the markets will play out all the related comments, investors' attention will concentrate on Greece. It will be interesting, but worrying.
RoboForex Analytical Department
Attention!
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.