Forex traders had been anticipating an announcement from this morning’s ECOFIN meetings which may signal an impending second round of financing for the ailing Greek economy. Initial agreements had the bailout in approval stages, conditioned upon Greece imposing a severe $40B austerity package that had sparked riots and a governmental cabinet shuffle.
As the government of Greece meets further pressure from its populace, the debate over a bailout for the regime has apparently reached an impasse. Several speculative reports have hinted that an emergency rescue deal would be passed shortly to stave off a default by Greece, but the delay in the approval process has shifted many traders into a bearish posture on their EUR/USD positions. The pair is likely to see further downside throughout the week if bailout talks stall any longer.
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