I am not sure how it will give affect for Euro. Either Euro will be stronger or weaker.. but I spotted a rising wedges pattern on EurUsd (current chart), and it seems like EurUsd will break its lower trendline.
THE Greek government, the European Commission, and the International Monetary Fund are all denying what markets perceive clearly: Greece will eventually default on its debts to its private and public creditors.
The politicians prefer to postpone the inevitable by putting public money where private money will no longer go, because doing so allows creditors to maintain the fiction that the accounting value of the Greek bonds that they hold need not be reduced. That, in turn, avoids triggering requirements of more bank capital.
But, even though the additional loans that Greece will soon receive from the European Union and the IMF carry low interest rates, the level of Greek debt will rise rapidly to unsustainable levels. That’s why market interest rates on privately held Greek bonds and prices for credit-default swaps indicate that a huge default is coming. And a huge default, together with a very large sustained cut in the annual budget deficit, is, in fact, needed to restore Greek fiscal sustainability.
More news at SMH. Well.. I do hope US Dollar will be stronger against Euro 🙂