Marek Rogalski, principal analyst DM BOS – Pulse of Business

Marek Rogalski, principal analyst DM BOS – Pulse of Business

This is just proof of how divided Europe itself is also in the approach to Greece. What is interesting dividing line is based on the amounts that have been in recent years pumped to Athens. Thus, it is even more understanding finance minister of Austria, and very nervous and skeptical even representatives of Germany, but also even Spain (see here even political interests – concessions for the Greeks is grist to the mill for the opposition Podemos Eurosceptics, who, after the autumn elections may become a major political force.)

However, it seems that the strategy aiming to break the Greeks force countries gathered around Germany, can produce results. Let’s see that much more “gentle” in the statements are representatives of the European Commission, and the head of the Eurogroup. The mentioned this afternoon before entering the summit that an agreement is possible within a few hours.

Continuing with the previous topic – Germany despite his skepticism with respect to the Greeks do not want to take responsibility for the rapid Grexit, to which at least half Europe is not ready yet (despite brave assurances of January, and any, before the January elections fell in Greece). The turmoil in the financial markets that there would in this respect, it would be a blow to the emerging recovery of the European economy. Also probably require a series of decisions on the release of further bailouts …. This also “humane” to the Greeks.

However liczmy with the fact that the agreement will not be tonight. Whether it will be worked out on the sidelines over the weekend, so as not to disturb the financial markets on Monday morning? That can never be ruled out. The fact that the topic referred to as “push,” he said this morning the Prime Minister of Greece, to mention the possibility of convening a special summit even the European Union – although “only” at the beginning of next week.

Further dragging Greek rope will affect the course of the common currency. This gained today only in relation to the Danish crown (that the Central Bank showed a “claw”), Canadian dollar (data on fatal. Retailing in Canada), and pound (British currency came after the disappointment data correction on. Retail). Interestingly, the euro was the weakest in relation to the franc – the leader of the last days has become an outsider. But the strengthening of the franc is also indirectly the result of the Greek concerns.

In the case of the EUR / USD fell today is around 1.1278 (very close to the support area of ​​1.1270), then quickly return to the vicinity of 1.1360 -70 (ie, to the starting point) after the words of the head of the Eurogroup of a possible agreement. The technical situation shows that both sides are really suspended and waiting for a pulse. Strong resistance is 1,1422-59 area, and support is around 1,1270-1,1300. Breaking of any of them will give greater impetus for movement to a new week.