EUR/USD is starting to retreat after hitting 7 week highs boosted by the European who have openly pledged support for Greece and Spain. Today marks another important meeting between Greek Prime Minister Samaras and German officials who have been harsh in responding to the Greece’s PM about “more time”.
Angela Merkel has already stated that she would not judge the country’s performance until after she gets a chance to review the troika report due next month. Yesterday speaking alongside the French president Francois Hollande they both stated they want Greece to remain as part of the euro zone, but that it must meet its targets.
Antoni Samaras has stated that he only wants a time extention added to the bailout agreements and not an increase in the size of the funds as was originally thought. This has benefited the EUR as a larger bailout and a time extention would be the worst possible outcome for the Eurozone as the Spanish crisis looms in the horizon.
Ongoing negotiations may have started between Germany and Spain on the formal aid request. This is of course a positive for the EUR as the Germany was the biggest obstacle for the existing funds to be released as well as the formal aid request chances to go through without their cooperation.