Earlier in the day there seemed to be hope for an agreement about Greece, when French finance minister Sapin offered a concession on the Greek primary surplus. However, talks broke up again, and were replaced by defiant statements by both the German finance minister Schäueble and Greek PM Alexis Tsipras. EUR/USD is falling back to support:
1.1373 is the old November 2003 support line. It serves as a clear separator of ranges. Further support awaits at 1.1313, followed by 1.1270. Resistance stands at 1.1460.
Greece does not want to ask for an extension of the bailout program which it was elected to abolish. It wants a relief in austerity measures. Tsipras tells his parliament in Athens that “I am saying it again, we are thinking of actually implementing our promises for a change’.
Germany does not want to change the current course of what has been agreed upon. Schäuble said that he does not know what Greece wants. He said: “What do they want? What is their plan. I don’t know, and so I am staying calm”.
We still believe that a compromise will eventually be reached. In the meantime, the headlines about Greece are dominating the headlines.
However, in the meantime money is moving out of banks and they might require more emergency funding.
But here’s another opinion: Grexit Probability Higher Than In 2012; Barclays
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