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Greece Denying a Default – Again

The Greek finance minister denied talk about Greece discussing a restructuring of debt with its creditors. This is not the first time. Jamie Coleman reports about this and adds details.

Having to deny restructuring / burden sharing / default / not paying debt, so many times, isn’t so hopeful. Too much of “no smoke”, and eventually we’ll see the fire.

My EUR/USD 2011 predictions focused on Spain and weren’t so pro-Euro. Now we got a reminder that the first country that was bailed out isn’t doing to good as well.

A test for the situation in Europe will come from Portugal, which makes its debut debt raising effort. A success on Wednesday’s auction will boost the Euro, while a failure rock the domino cards. Some say that Portugal will be the last domino, rather than just another one before the really big country – Spain.

Spain doesn’t have an auction this week, but has a lot on the road ahead, during the first half of 2011. There’s a fear of “Credit Crunch 2” that will occur this year.

Maybe China will buy Spanish bonds and save the day…

This will certainly be an interesting year.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.