EUR Under Pressure After Greek IMF Repayment Comments

The euro has come under pressure on the foreign exchanges after leading Greek politicians warned the country would be unable to make its next debt repayment to the International Monetary Fund (IMF) on 5 June without a rapid deal with its creditors.

At the start of a crucial two-week period for Greece, the credit rating agency Moody’s said there was a high and increasing risk that the crisis stricken country would have to impose capital controls to stem capital flight from its banks.

The first hints of measures to prevent bank runs came as Reuters reported that the Syriza-led coalition in Athens was considering imposing a transaction tax on bank customers.

With the European central bank discussing whether to expand emergency lending to Greece, the single currency lost fresh ground against the US dollar – extending this week’s fall to 3%.

Investors are becoming alarmed at the prospect – fuelled by signs of a split in Syriza’s ranks – of Greece running out of money, defaulting on its debts and leaving the single currency.

via The Guardian

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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