Forex Trading Europe – Heavily indebted peripherals

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An ECB delegate stated today that the restructuring of the Greek debt will not be discussed on the next policy meeting, defying the comments from the two German government advisers during the weekend, that the restructuring is the only possible solution for Greece, as at the moment the country pays for debt interest almost all of its tax revenues. The Greek Finance Minister refused again that there is possibility that his country will go for the solution of restructuring.

There are doubts over Portugal, whether the caretaker government will manage to push through the required reforms, in order to grab the aid from the rescue fund. Klaus Regling the head of the EFSF mentioned that the time frame for the deadline is very tight and he has his doubts that the Portuguese government will manage to come to an agreement within the designated time frame, ahead of the elections. The reforms that should be agreed are very drastic, even fully functioning governments would face difficulties on such agreements. Portugal has to pay a large amount by June 15. The EURUSD pair is currently trading at 1.4845, recovering from the trough of 1.4771 at the opening of the European session.