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a rising euro against the dollar on Tuesday, but in Greece prior to the debt problem has not been a definite progress, the euro still bearish by institutional investors.
in order to obtain from the European Union and the International Monetary Fund (IMF) assistance, Greece must have more fiscal austerity measures, including a series of privatisation of the assets, but which resulted in Greece popular discontent and mass demonstrations erupted, Greece was forced to restructure the Government Cabinet, uncertainty over the new aid scheme therefore also.
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beauty data poor dragged down beauty means Greece or reached Rescue Agreement QE3 hopes stimulation dollars higher Greece crunch programme not optimistic euro bearing pressure in the Russia signed bilateral currency settlement agreement EU Summit primary issues resolve Greece crisis Tan Yaling: dollars status complex stagflation constraints fed wait deciphered fuck disc password master main trends in above environment Xia Investor risk appetite deteriorated sharply, then the euro/dollar was fell sharply, and the leaders of the EU is still weighed down in order to restore market confidence. Since the end of 2009, Greece debt crisis, this pattern has not changed.
the EU Finance Ministers meeting on Monday, Greece debt crisis solution, still no consensus, but of a European financial stability fund effective borrowing capacity increased to 440 billion euros of message number to appease investors ' mood. Ease risk aversion sentiment, to non-US currencies such as euro rebound.
according to Eurogroup President Juncker said that Greece can reform commitments are the next batch of loans in place of the key. However, it was eventually decided to defer to Greece providing 12 billion euros (about US $ 17 billion) emergency lending further make a final decision.
Beijing 21st late, Greece Congress will hold a vote on the new Government, through voting, the Congress will be in late June to vote on the Government's new austerity measures. This time, Greece attitude of the people in Greece can tide over the difficulty this time is critical.
Greece difficulty still lies in the capital. Because Greece had been unable to obtain effective financing from the market, external assistance has become Greece the only life-saving straw. As a member of most components of the eurozone, Germany once again on the new aid efforts have been made, however extremely fierce reaction in financial markets last week, Greece 2-year Treasury bond yields were once more than 30%, China Merchants Bank (600,036, unit) Liu Dongliang, an analyst for the business news reporter described, in the Treasury bond market may be regarded as a "astronomical". In addition, Greece, and Ireland, and Portugal, 10-year government bond yields are in its history since the euro market last week.
but final results may not be very good. According to foreign media reports, surveys, Greece over 50% of voters oppose the austerity measures. If you are not in July made the loan, Greece bankruptcy may be close at hand, and this result is not only against the euro, and is huge blow to confidence in the financial markets as a whole.
Liu Dongliang told reporters, Greece in the event of a default in the future is the probability of the event, occurrence and intensity of the problem. If Greece defaults, in Greece with large exposures to Germany, and France and the United States banking industry, will again face enormous risks.
he also mentioned that Greece Cabinet reorganization is a dangerous signal, indicates that the debt and financial instability, has begun to spread to the political arena. He said that, although prior rating agency cuts Greece rating make the market feel numb, but Greece the Government was forced to restructure the Cabinet and the investor have to renewed focus on rating agency's rating, it now, the downgrade is not groundless.
so the prospects of the euro against the US dollar continues to be bearish, agency analysts recommended that investors every high being short of the euro, and some analysts believe that declines as the EUR/USD will be put on the first half of 2010.
