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20 May 2015
Greece robs “Peter to pay Peter” – MP
FXStreet (Barcelona) - Dean Popplewell, VP of Currency Analysis and Research at MarketPulse, comments on the key developments surrounding the Greece debt deal, with the Greeks warning of defaulting on the next IMF repayment.
Key Quotes
“The 19-member single unit continues to lean on the back foot, straddling the psychological €1.1100 handle this morning, with pressure again being applied from Greece’s payment schedule. The EUR hit fresh monthly lows at €1.1062 as Greece hardens its negotiating stance by threatening to withhold its next IMF payment. Nevertheless, the key support area has held for now, with the pair remaining locked into the lower end of its recent weekly range.”
“To the market, it’s not a surprise that the Greek government is warning again that they could miss a payment – the June 5 IMF one. Last week their actions highlighted the precarious nature of their financial situation. Greece raided their reserve accounts at the IMF to keep to its current payment schedule. Basically the Greek authorities are applying not so subtle pressure to get their international creditors to bulge from current demands.”
“Nonetheless, the IMF does not scare easily, they, like anyone else, want a permanent deal to ensure sustainability, and the ECB will not be drawn into a political battle. Neither entity can afford to be the instigator that pushes Greece to trigger Grexit, but the cash has run out.”
Key Quotes
“The 19-member single unit continues to lean on the back foot, straddling the psychological €1.1100 handle this morning, with pressure again being applied from Greece’s payment schedule. The EUR hit fresh monthly lows at €1.1062 as Greece hardens its negotiating stance by threatening to withhold its next IMF payment. Nevertheless, the key support area has held for now, with the pair remaining locked into the lower end of its recent weekly range.”
“To the market, it’s not a surprise that the Greek government is warning again that they could miss a payment – the June 5 IMF one. Last week their actions highlighted the precarious nature of their financial situation. Greece raided their reserve accounts at the IMF to keep to its current payment schedule. Basically the Greek authorities are applying not so subtle pressure to get their international creditors to bulge from current demands.”
“Nonetheless, the IMF does not scare easily, they, like anyone else, want a permanent deal to ensure sustainability, and the ECB will not be drawn into a political battle. Neither entity can afford to be the instigator that pushes Greece to trigger Grexit, but the cash has run out.”