German Chancelor Angela Merkel, ECB President Mario Draghi and Greek Prime Minister Antonis Samaras are nervously awaiting the release of the Troika’s report, which should be completed somewhere between late September and early October.

Full Circle: All Eyes on Greece Once Again

Submitted by Burkhardt on 08/28/2012 10:55 -0400

• Beige Book
• Ben Bernanke
• European Central Bank
• Greece
• Gross Domestic Product
• International Monetary Fund
• Personal Consumption
• recovery
• Unemployment
• Volatility

Greece, the genesis of it all, the birthplace of the European debt crisis is in the limelight once again. Can balance be restored to a country so burdened with debt, and is it in the EU’s best interest to continue to foot the bill for the catastrophe that is Greece? It’s decision time.
The International Monetary Fund, the European Central Bank and the European Commission together form the Troika. The group is jointly analyzing the viability of Greece’s long-term growth and debt reduction plans based on the countries current path. If the outlook is bright and Greece is making progress to resolve their debt then it will buy the country some time. If, on-the-other-hand, progress is bleak then the hour of truth will be close at hand.

German Chancelor Angela Merkel, ECB President Mario Draghi and Greek Prime Minister Antonis Samaras are nervously awaiting the release of the Troika’s report, which should be completed somewhere between late September and early October.

Greece’s climb towards solvency is steep and the underlying question remains; can the country return to growth and reduce its debt before it’s too late?
Trader Insights
The Euro has had a strong rally against the US Dollar since July 25, 2012. The bulls have had a nice ride, but they are about to get squeezed. Europe’s economic conditions are not sustainable, and the hype about a Euro recovery is loosing steam. The EUR.USD has been in a corrective phase and is ready to fall back into the trend continuing within its downward plunge.
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Indicators on Watch
This should be a good week. There is a good deal of activity on the economic front, which could mean mass volatility.

• EUR German Consumer Price Index (Wednesday)
• USD Gross Domestic Product (Wednesday)
• USD Fed Releases Beige Book Economic Survey (Wednesday)
• EUR German Unemployment Change (Thursday)
• USD Personal Consumption Expenditure Core (Thursday)
• USD Fed’s Bernanke Speaks at Jackson Hole Economic Policy Symposium (Friday)
• EUR IMF’s Lagarde Speaks at Jackson Hole Economic Policy Symposium (Friday)

Your currency analyst,
Justin Burkhardt