Greece may fail to pay its debts in the near future as its public debt is roughly equal to 150% of the GDP. The EU officials, who discussed the issue during the weekend, say that another loan to Greece (152B euro) will depend on whether the Greek authorities will manage to control the budget spending.
The worries about Greece’s solvency affected global financial markets. However, the decision made by European central banks to support the banking sector eased the tension. Germany also promised to do its best to save Greece.
Timothy Geithner, US Secretary of the Treasury, called upon the EU authorities to be quick when deciding on the destiny of Greece as disputes would only aggravate the situation.
The EU ministers of finance agreed to toughen budget regulation.
FOREX.
According to the Department of Masterforex-V trading system , the mid-term prospects of EURUSD look as follows:
The short upswing - wave A/B(1.3494-1.3936) – is completed:
· A h4, a retracement (B h4) and then an upswing (C h4).
· B d1, C d1 (a full-grown FZR d1 = a long-term trend reversal) if 1.3494 is overcome.
Support:
■ retracement grid h4 1.3494-1.3936;
■ pivots 1.3556, 1.3591;
■ FZR 1.494.
Resistance:
■ retracement grid d1 1.3494-1.4547;
■ sloping channel 1.4939/1.4547;
■ pivot 1.4280.
