Little hope of a deal for Greece

Monday, Jun 15 2015

Since there are no major data releases from Eurozone today, traders remain focused on Greek negotiations with the foreign lenders.Over the weekend negotiations with Greece broke down as all parties walked away with no deal and at this time little hopes of a deal. Many analysts think that a Greek exit has already been factors into the markets which seem to be true.

Talks on ending a deadlock between Greece and its international creditors broke up in failure on Sunday, with European leaders venting their frustration as Athens stumbled closer toward a debt default that threatens its future in the euro. Greece retorted it was still ready to talk, but that EU and IMF officials had said they were not authorized to negotiate further. Athens insists it will never give in to demands for more pension and wage cuts.

Last Friday, Greek Prime Minister Alexis Tsipras had indicated he would accept painful compromises on demands for austerity and reform in return for debt relief. But the Commission said after the talks, which also involved the European Central Bank, that "the Greek proposals remain incomplete". "While some progress was made, the talks did not succeed as there remains a significant gap between the plans of the Greek authorities and the joint requirements of Commission, ECB and IMF," it said. These amounted to up to 2 billion euros a year in permanent budget savings.

Later today, European Central Bank president Mario Draghi is scheduled to testify before the European Parliament’s economic and monetary affairs committee, with comments on the bank’s quantitative easing program especially high on the radar of investors. Euro is currently being traded few points above 1.12 handle. Pair is likely to find support around 1.1150 and resistance above 1.1270 level. Except Mario Draghi's speech, in the US session, Empire State Manufacturing Index and Industrial Production figures are scheduled for a release.

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