Greece will be hoping for the best today in the Eurogroup meeting as all Finance Ministers from the Eurozone will meet to discuss giving Greece’s second bailout a final approval. The €130 Billion deal needs to be finalized today with the International Monetary Fund (IMF).
Last week, Friday saw some positive news for Greece as investors agreed to cut debts owed to them. The International Swaps and Derivitives Association (ISDA) declared yesterday that Greece’s Bonds bought by investors will now receive smaller returns on their payments. This will not be digested well by investors as their confidence in the debt ridden country will create further woes as attractive rates put on bonds initially may not be favorable after all with further reductions likely. The euro could suffer as a result in the long term.
Towards the end of last week the US saw its unemployment rate consistently high at 8.3% and the country’s trade deficit widened to $52.57Bn. As a safe haven we saw the US dollar strengthen further as Industrial production and retail sales declined in China.
A possibility for the US dollar to weaken could prevail this evening at the release of the Fed’s monthly budget statement. Despite high unemployment growth is expected to continue in the states albeit at a modest pace.
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