EUR/USD is moving up towards the 1.3280 line on strong optimism that the bailout package for Greece will be signed off today. Is this optimism justified?
Michael Derks of FxPro discusses the finance ministers meeting in Brussels and the possible outcomes in the video below.
A bridge loan will prevent a default when Greece needs to redeem bonds worth around 14.5 billion euros on March 20th. Nevertheless, it will not provide a solution for the problem, and will continue “kicking the can down the road”.
Where will Greece’s long and winding road end? Will it take a turn for the better?
Other issues discussed are the Chinese move to reduce the RRR, Japanese QE, British QE and next huge LTRO operation by the ECB.
Oil prices are moving up due to the recent tensions around Iran. This is somewhat overshadowed by the Greek drama, but this issue is also important. Consistently high oil price can certainly derail the recovery in the US, as well as in other countries.
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