Traders weighing on Euro as Greek talks fail to clinch a deal

Friday, Jun 26 2015

A failure on Thursday to clinch a deal between Athens and its three creditor institutions - International Monetary fund, European Central Bank and European Union - set up a last-ditch effort to reach agreement on Saturday in order to avoid a default next week. Although reports from the FT suggested Greek Prime Minister Alexis Tsipras had been given a deadline of 11am Brussels time to reach an agreement that time came and went without any news.

No deal or agreement has been reached as Alexis has departed the meetings. On Wednesday a draft document was leaked showing dozens of lines of changes to Greece’s original reform proposals. Earlier, Tsipras had vented his frustration, telling aides that creditors “either don’t want an agreement or they are serving specific interest groups in Greece”. Next Eurogroup meeting is scheduled for Saturday and despite the delay majority of market analysts still believe that deal will be struck.

Eurogroup is waiting for Greece to come back with a better proposal. EU's Dijsselbleom said for Reuters that door is still open for Greeks to accept proposals and that he will inform leaders on the state of talks. The deadline for Greece to pay 1.6 billion euros ($1.8 billion) to the International Monetary Fund is Tuesday.

Euro is currently being traded few points above 1.1180 level. Pair is likely to find support around 1.1150 area and resistance above 1.1225 level. Later today, in the US session, revised consumer sentiment figures are scheduled for a release.

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