EUR 12billion by IMF/ECB provided they can agree to stringent targets via another slew of austerity measures by 30 June. Greek PM going through vote of no confidence. How does that leave the creditors? Never mind that the Greeks, through their seemingly generous benefits and widespread non-payment of their taxes fro swimming pools to under declarations of earnings, have over borrowed as a country. Now have to tighten their belts significantly or cough up money due to the state. The other Eur110. Billion is still in the air and it will take up to at least mid July before a decision is reached about those loans! The market has however priced in quite a lot fir a technical default and probably expect a haircut for creditors eventually. This will trigger one of the scenarios I mentioned on this blog before. On the other hand, US still looks weak. EUR still looking weak, rallies could be sold for a break of 1.40 AUD Hawkish comments by RBA bid for AUD. Watch China widening band for CNY trading. More appreciations? Or more rapid appreciation? Buy dips to 1-1.02 GBP Weak weak weak. See 1.60 tested and may break. Target 1.57 JPY Supported still at 80 but may drift through to 79.50. Market still wary of BOJ. Top side 83 provides ceiling for now.
