The Greek drama continues. There were several rounds of debt talks between Athens and its lenders, but there is still no deal. The procedure is the same: the Greek provides a proposal. First comments by EU officials are optimistic. But they say that they need time to check a proposal closely. Later they say that a proposal is not enough.
It seems that Greece's lenders need a deal more than Greece itself. The Greek government makes some changes and wait what its creditors say. Perhaps, Athens waits for a default to start from zero.
EU officials fear the possible consequences of a Greek default. So I think a deal will be reached by June 30. In my opinion, Greece's lenders will give in more than Athens.
Speculation on the interest rate hike receded a little into the background. The U.S. economic data showed the country's seems to recover from the weak first quarter, but the manufacturing and services sectors remained weak last month. U.S. exporters were hurt by a stronger U.S. dollar.
Federal Reserve Governor Jerome Powell said on Tuesday that the Fed could raise its interest rate twice this year, starting in September. So his comments should reassure markets. The possible interest rate hike should play a small role next week.
Markets are expected to be volatile as investors remained focussed on the Greek debt problem. It is likely that the currency pair EURUSD will test the level $1.1000, maybe even the level $1.0900, if a deal between Greece and its creditors is not reached. If the results of the debt talks are positive, the currency pair EURUSD may test the level $1.1300 or $1.1400.
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.