The euro edged lower against the U.S. dollar on Wednesday after touching the technical resistances between 1.1330 and 1.1345 again, as trading became subject to news and statements between Greek officials on one hand, and European officials on the other.
Several news agencies circulated the new Greek Defense Minister Panos Kammenos statements that were broadcasted on Greek television, indicating that the Greek government has an alternative plan if the talks with international lenders failed to approve the amendments regarding financing terms for Greece.
Kammenos confirmed that without reaching an agreement with international lenders to swap debt and get a credit line for the next six months, which is facing a strong rejection from Germany (the largest lenders), the Greek government will have to resort to plan B for funding.
“Resorting to plan B for funding” is getting funding from another source. It could be China or Russia, one of the options in front of the Greek government.
Therefore, markets are awaiting the outcome of the euro zone ministers meeting on Wednesday in the Belgian capital, Brussels, and the results of the European summit at the end of the week. These meetings will discuss Greek debt restructuring to determine its future in the euro zone, while Germany sticks to its position. Markets hope to reach an agreement that would restore confidence in Europe’s single currency.
Reaching a good settlement is likely after yesterday’s discussion between the Greek Prime Minister Alexis Tsipras and the President of the European Commission Jean-Claude Juncker, whereas the positive friendly discussion indicated that the cooperation between both sides is possible.
The new Greek government demands the removal of 100 billion euros of debt owed by Greece. Will this requirement be the base of negotiations?
Finally, EURUSD pair traded around 1.1315 at 08:00 GMT.
