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Wednesday, April 28, 2010

EUR weekly update

The weekly chart of the EUR is still on its way to test the lower band of the trading channel. a test of the 1.27-30 area is mandatory as Germany will find good reasons to delay the final bailout to-after the 9th may due to crucial elections. bailout of Greece is very unpopular with only 33 percent supporting it. I did not not due the math but a substantial portion of the current greece budget goes to paying interest on the debt about 50 percent. that can not be solved by the measures IMF or EU are demanding basically a default would be the healthy thing to do and pay 25-30 percent in a debt restructuring. Greece never really matched the EU criteria and everyone could have seen that. Anyway the question is can Greece do what is best for them BANKRUPTCY or will corruption arrange for them to be bailed out- actually its rather again a backdoor bailout of EU banks - mostly France, Germany and non EU member Swiss. ın any case the next 2 weeks will remain painful until we hear the final solution which in my opinion will be a bailout.

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