After Greece missed the ~1.5 billion euro payment to the IMF and its bailout officially expired, critical talks are continuing in Athens, Frankfurt and Brussels.
EUR/USD is sliding lower, but is far from collapsing. Here are the latest updates and the timetable for today:
- Polls are beginning to emerge towards the Greferendum on Sunday. One polls shows 46% NO and 37% YES. The rest are undecided and it is clear that the fact that banks are closed helps the YES campaign.
- Merkel says there is nothing to negotiate before Sunday.
- But French finance minister Sapin says there is an intention to reach a deal before Sunday.
- The IMF is officially “considering†the request from Greece to delay the payment, but in any case, Greece is officially only in “arrears†and not in “defaultâ€. In any case, Greece joins a club of developing countries with the lack of IMF payment.
- Some Greek banks open today for pensioners: these can withdraw 120 euros per day, double the amount that other people can.
- European stock markets open up, after two days of falls.
Timetable:
- 10:00 ECB meets to talk about the ELA. They are not expected to cut support, but could tighten collateral requirements.
- 15:30 Eurogroup has another teleconference to talk Greece. Yesterday they rejected extending the bailout nor Greece’s new 2 year proposal. They were originally expected to convene at 9:30 GMT.
Greek crisis – all the updates in one place
EUR/USD has turned lower. Support awaits at 1.1050, resistance at 1.1160. We have actually seen this yesterday.
Goldman Sachs sees EUR/USD near parity if the situation deteriorates.
Here is the chart:
