Greece has a €2 billion repayment due to the International Monetary Fund today which is expected to exhaust all possible options for the Greek Government as they race to secure more financing from the European Union. It is rumored that this time the government turned to state owned utility companies to borrow the funds necessary to meet IMF obligations after raiding pension funds the previous week. According to recent comments from the ECB, the Central Bank is already preparing itself for a Greek exit in which the value of Greek holdings takes a 95% haircut. The fact that the ECB has drawn up plans for the highly probable scenario is indicative that negotiations with the Troika are unlikely to go far. With Greek’s pulling funds from banks at a heightened rate once more, the nation will be left without money in mere weeks. EURUSD retraced all its FOMC gains and looks poised once more to retest major support at 1.0500.
Greece Resumes Negotiations
Daily Analysis - 20/03/2015