Talks described as a last ditch effort to resolve the crisis ended abruptly after only 45 minutes. The weekend talks were expected to a yield a result that would be approved by the Eurogroup that meets later this week.
Is it the end of the talks? Not so fast. The euro already feels the pressure:
EUR/USD opened with a gap lower and dipped below the 1.12 level. However, it was also quick to recover. Headlines are buzzing all the time. Here are some:
- Greek finance minister Yanis Varoufakis says his country will not exit the euro-zone.
- He says that German Chancellor Angela Merkel can resolve the crisis in “one nightâ€
- German officials say there is no deal without the IMF.
- German vice chancellor, who has been more sympathetic to Greece, says that the debt stricken country is “gambling†on its future, in an op ed.
The main sticking point is pensions: the creditors see the pension system as unsustainable and want deep cuts. The government cannot back down on promises not to touch the already extremely low pensions.
Another sticking point is that the creditors want a VAT hike.
More: What’s next for EUR/USD? Key Triggers from Morgan Stanley
Important lines are 1.1290 and 1.1373. On the downside, we have 1.1150 and 1.11.
Here is how it looks on the chart:
