Forex: Greece towards restructuring – Euro off the multi month high

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The accumulating debt and the severe imbalances in the Greek balance sheet are dictating that the country should proceed immediately to restructuring; this view was supported today by a German government delegate, such a move is not expected to be catastrophic for the banking sector though, easing the fears. This statement completed a series of propositions or ‘threads’ over Greece that should proceed to restructure its debt despite the possible negative effects, but there is no other possible solution visible in the horizon as Greece is now spending half of its tax revenue on interest payments and has stretch to the limits the austerity measures. Some investors commented that Greece should proceed the soonest possible to the solution of restructuring, as the past experience showed that the consequences of delays are devastating.

Since 11:00 GMT the single currency has lost some 113 pips to hit a low of 1.4530, moving away from the 16 month high of 1.4647. The EURUSD pair has as safety net the 23.6% Fibonacci retracement level of its April 18th to April 21st rally (on hourly charts), at which we saw the pair gaining some almost five big figures, a break below that level could ignite loses to 1.4474 which lies the next support level. Currently the Euro is trading against the US Dollar at 1.4546, close to the good support point of the 23.6% Fibo level.