The deep and prolonged recession in Greece expanded the budget deficit up to €490B in January 2012 against last year’s surplus equal to €154B. The proceeds declined mainly due to lower consumption. Greece has entered the 5th year of economic decline.
Since May 2010 the Greek authorities have been relying mainly on external loans. Even though Athens received €73B last year, the authorities failed to reach their fiscal goals due to unfulfilled reforms.
Not so long ago European leaders approved another tranche to Greece because the first one had failed to prevent a possible default. The Greek government is desperately trying to cut the public spending, thus imposing austerity on common Greeks. The authorities have already started selling off public assets, including the privatization of DEPA. They are planning to attract €11B from asset sales.
According to the DFWA Department of , EURUSD seems to have reached the bottom around the heavy MA. The price will probably start consolidating between the green and orange lines (as shown below). Therefore, it is better to buy at the bottom and to sell at the top of this range.
