EU leaders finally managed to agree on writing down up to 50% of Greece’s debt. The current Greek debt is roughly equal to €350B.
It is reported that the EFSF is going to be expanded up to €1 trillion, with China probably contributing to the expansion. Angela Merkel told the reporters that Greece’s financial activity would fall under control in the near future.
The writedown of the Greek debt is expected to be a heavy burden to European banks as they will need €106B of extra capital. The results of the latest EU summit show that extra measures are necessary to restore the confidence in European banks.
FOREX.
According to the Department of Masterforex-V trading System, EURUSD keeps accumulating its potential for another move. Yesterday’s breakout of the MF sloping channel increased the wave level of the major retracement up to Daily 2. A FZR, which was formed at 1.3974, started sub-wave A, with the target around 1.4170 (=123% Fibonacci). Once the price breaks the MF pivot 1.3800, it will start a retracement wave of Daily 2. In this case the closest support will be found at 1.3657 (= 62% Fibonacci).
