Leaders of the Eurozone have welcomed new proposals for reforms in Greece. It looks as though there may well be a deal in place to stop Greece defaulting in the coming days.Greece are set to pay €1.6bn to the International Monetary Fund (IMF) by the end of the month. If it is not met, Greece may well leave the Euro which could be catastrophic for the single currency.German Chancellor Angela Merkel has stated the Greece’s latest proposal constituted “some progress but time is short”.
The Greeks are however refusing to budge in further reductions to public sector wages and pensions.The European Central Bank (ECB) has approved additional emergency funding for Greek banks to cover withdrawals after the vast amounts that have been taken out over the last few weeks. This will allow the banks to stay open giving some breathing space for a deal to be made.So it looks as though subject to technical talks a deal to release additional loans for Greece may be reached by the end of the week. If this is to take place we could well see significant euro strength. With the Interbank rate currently sitting above 1.40, it may be prudent to take advantage of current trading levels if you are a Euro purchaser.
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