Week in FX Europe – Netherlands and Germany Unsure About Greece

This week the Greek goverment was very optimistic about his proposed agreement extentions. Politicians from Germany and Netherlands on the other hand have been very vocal in their dissapointment with Greek efforts to push auterity reforms forward and achieve deficit targets. The official statements had two parts. One was: “We want Greece to remain in the eurozone, but…” and the second part was along the lines of “Not doing enough”, “We will wait for troika report”, etc.

Bankia Group the lender whose nationalization pushed Spain on the brink of bailout requirements announced a 7.05 billion euro loss. This could be the trigger that forces the Spainish goverment to formally request a bailout. The ESM funds are still pending Spain’s compliance with certain conditions, but analyst have hinted the country will need more. To put things in perspective, Bankia is the fourth largest lender in Spain.

WEEK AHEAD
* EUR Consumer Price Index
* JPY BoJ Interest Rate Decision
* JPY BoJ Monetary Policy Statement and press conference
* EUR ECB President Draghi’s Speech
* CAD Gross Domestic Product
* USD Nonfarm Payrolls
* USD Unemployment Rate

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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
Alfonso Esparza

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