Good Afternoon Traders,
Well, what a shock! The Greeks and Eurozone have almost come to an agreement. Did we expect anything else other than a can-kicking exercise? Significant hurdles still need to be overcome before the deal is finalised and what’s more, the negotiations over debt restructuring, which have been put off again, may yet prompt a Grexit. There is, of course, a debate over whether Grexit would be positive or negative for the euro itself.
At some point, the politicians will have to take their heads out of the sand and deal with it.
Will Greece agree to the new plan on Thursday now, they’ve basically had to barter to survive with the banks closed for two weeks? Or Will they leave the euro zone altogether?
I suspect Greece will go with the new plan out of fear. They’ve had a look at what life outside the euro zone would look like over the past two weeks; I imagine it hasn’t been pretty hence why Tripas has folded accepting tougher conditions than were previously negotiated
Greece’s government owes for 323 billion euros. 75% of that goes to foreign creditors.
Germany holds the most Greek debt at 92 billion euro.
The others hold less.
France holds 70.3 billion.
Italy 61.5 billion.
And Spain just 42.3 billion.
If Greece defaults, that money is largely or totally gone!
Is there light at the end of the tunnel?
Grexit Forex Analysis
I would say it’s almost certain they will agree on Thursday and we should at least for a short while be able to refocus on monetary policy and growth divergences between the US, Eurozone and other countries, such as the weakness in safe haven currencies like the Yen and swiss franc.
With the only event holding the euro above 1.1000 now removed, I fully expect Euro to be at parity in the next few months. That’s a 1000 pip move.
We have huge economic divergences between the Eurozone and US. Plus the Greece issue has not been fixed and will most certainly resurface in the time which will naturally be priced into the market.
So there we have it finally a Greek resolution, hardly, but at least a rest bite for a while, before it resurfaces further down the line.
On a more positive note, I hope you managed to catch our Trade of the Day video demonstrating the Major resistance and Major support levels accuracy. Please see our you tube page or trade of the day on our Platinum Trading Systems website.
Get latest Forex and Cryptocurrency market reports and views, trading videos and forecasts of trading opportunities delivered straight to your Inbox.
The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.