On Monday Lukas Papadimos, Prime Minister of Greece, stated that the debt restructuring agreement with private bondholders was about to be signed.
Probably that is why the participants of the EU summit ignored the Greek problem, thus focusing on tighter economic and fiscal integration within the union. Angela Merkel said that during the summit the EU leaders mad a small but considerable step towards regaining investor’s confidence and trust.
As for writing down the Greek debt, Christine Lagarde, Managing Director of the IMF, points out that apart from private bondholders it is necessary to reach e compromise with state public institutions acting as lenders. If to recollect that the ECB has already spent 40B euro on Greek bonds, writing down the Greek debt would be painful for the central bank.
In the meantime, EURUSD has completed wave an H4 upswing. At this point, the price is working out the bearish reversal point of H1. According to the SRP Department of , the closest downward target is 1.2994.
