US Dollar Gaps Sharply Higher as EU Deadlocks over Greece
- EU Finance Ministers’ Meeting In Wrocław, Poland fails to result in plan
- Warsaw talks reject any possible stimulus for European economy
- IMF and EU watchdogs monitoring Greek conditions again after discovering hole in budget
- Greek FinMin Venizelos working to reassure Greek eligibility for October tranche.
The possibility of a Greek default became a main concern again last week, exacerbated by new evidence that Greek government accounts may be lower than previously forecasted, set the tone in the markets in pre-Asia trading. Additionally, dovish comments by ECB President Trichet cut expectations that the central bank may continue to pursue price stability, and will watch the health of its peripheral members.
At the time of writing, uncertainty over Greece can be seen to ripple into the US markets. S&P500 futures are currently -1.246% representing a fair value of 1197, while the Euro leads losers against the buck, dropping 0.831%. A moderate mid-morning recovery attempt across all risk-based pairs was seen, although has tapered off and continued to be sold. TheDow-Jones FXCM US Dollar Indexrose 0.14% at 9710.22.
EURUSD 5 minute chart; generated with FXCM Strategy Trader.
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