Weekly preview - Sell the Euro rally

Posted by Forexsq 91 days ago (http://www.investica.co.uk)

Forexsq.com - It is a case of déjà vu again and again this week as Greece will inevitably dominate the headlines. It will basically come down to German Chancellor Merkel’s decision whether to push ahead with a deal package which totally lacks credibility or whether to put Greece out of its misery now and gamble with default and Euro exit. It looks increasingly likely that Germany is prepared to take the gamble and let Greece default. If, however, the Eurogroup does decide to prolong the agony and approve the loan deal on Monday, then any Euro rally should be seen as a huge selling opportunity.

The Eurogroup of Finance Ministers is scheduled to meet on Monday after a series of postponed meetings last week as they look to finally agree a loan package for Greece. The Greek government claims to have found the extra EUR325mn demanded by Brussels and this could in theory allow approve the EUR130bn second loan package. It is increasingly clear that this will not provide a durable solution and the Euro will be dragged down by increasingly severe tensions as French President Sarkozy faces the threat of losing his re-election bid.