The situation in Greece, related to the modification of the latest debt bailout, has only become more confusing rather than clearer, and as a result FX traders have sold off their holdings in the Euro as they await a decision by EU leaders and Finance Ministers. According to analysts, however, officials have already downplayed the possibility that there will be a positive breakthrough in the talks. Greece hopes to not only have a new plan negotiated but to end the austerity component of the previous bailouts.
As reported at 9:48 am (GMT) in London, the EUR/USD was trading at $1.1313, close to the low end of today’s trading band which is between $1.1302 and $1.1335. The EUR/JPY, meanwhile, managed to edge higher and is currently trading at 135.4969 Yen, nearer to the session’s top end of the trade band which is 135.0150 Yen and 135.6900 Yen.
Troika Members Agreement Unlikely
Analysts believe there is little hope that Greek officials will be able to overturn the current sentiment among the Troika members, and that means that Athens will have to maintain the austerity plans if they want to continue to have financial support. As a result, FX strategists expect to see significant volatility this week.