The situation in Greece is becoming more sticky, and the pressure that began yesterday is mounting. There are fresh reports that the ECB is considering limiting the Emergency Liquidity Assistance which was the only lifeline after the Frankfurt based institution stopped accepting Greek bonds as collateral back in February. This isn’t the only ominous sign.
EUR/USD is trading at 1.0660, extending previous falls.
These reports coming out of the ECB could well be a negotiation tactic, but they come on the background of nervousness about the Greek situation.
Yesterday, the Greek government announced that all funds of local governments must be parked at the central bank in Athens. Â This is an official decree.
It seems that the government is trying to dig out whatever funds they can grab in order to pay salaries, pensions and perhaps the IMF.
There are doubts if the next IMF payments will happen on time or happen at all. The previous deadline of April 24th, this Friday, is coming, but there is another “final final†deadline on May 11th. The Eurogroup meetings are supposed to approved negotiations, but those are stuck at the moment.
More: EUR/USD: 55d AVG Key – BofA Merrill
Here is how it looks on the chart:
