EUR waiting on Greece Germany Meeting

EUR/USD is starting to retreat after hitting 7 week highs boosted by the European who have openly pledged support for Greece and Spain. Today marks another important meeting between Greek Prime Minister Samaras and German officials who have been harsh in responding to the Greece’s PM about “more time”.

Forex heatmap

Angela Merkel has already stated that she would not judge the country’s performance until after she gets a chance to review the troika report due next month. Yesterday speaking alongside the French president Francois Hollande they both stated they want Greece to remain as part of the euro zone, but that it must meet its targets.

Antoni Samaras has stated that he only wants a time extention added to the bailout agreements and not an increase in the size of the funds as was originally thought. This has benefited the EUR as a larger bailout and a time extention would be the worst possible outcome for the Eurozone as the Spanish crisis looms in the horizon.

OANDA Open Position Ratios

Ongoing negotiations may have started between Germany and Spain on the formal aid request. This is of course a positive for the EUR as the Germany was the biggest obstacle for the existing funds to be released as well as the formal aid request chances to go through without their cooperation.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza