Greek bailout negotiations between Greece and European creditors ended yesterday with no new deal as neighbors begin to contemplate the impact of an exit. Germany is already busy drawing up plans to go ahead and contain any default in measures that probably contain capital controls and bail-in measures to ensure that the crisis does not spread. Adjacent Macedonia, a Balkan nation bordering Greece has already prevented withdrawals by local branches of Greek banks operating in the region in a sign that potential bank panics are in the pipeline. With June’s IMF repayments coming in mere weeks and no visible cash influx to meet the looming obligations, Greece’s days are likely numbered with a Cyprus-style situation expected to ensure. The EURUSD pair continues to trend above key support at 1.1200 as the dollar gains modestly ahead of Wednesday’s FOMC Statement and monetary policy decision.
No Deal for Greece
Daily Analysis - 15/06/2015