We talk about the budget crisis in the U.S., but we can't forget about Greece
While investors continue to expect decoupling in talks Obama and the Republican Congress on the issue of the budget crisis, the situation around giving Greece the next tranche of financial assistance is characterized by high activity of Athens.
The Greek government has taken the decision to ensure budgetary targets and ensuring that the proceeds from the privatization of state property will be used to repay debt. These actions are intended to gain the approval of foreign creditors before an important meeting the eurozone finance ministers, to be held today.
It is assumed that at a meeting of the Eurogroup will discuss the debt crisis in Greece, and if approved, then it will be provided with financial assistance in the amount of 30 billion euros ($ 38 billion) to prevent the bankruptcy of the country.
As we see it, this is a significant decision will be made as part of Athens in the area of the single currency is not so much an economic necessity as a political act to contain the collapse of the eurozone.
Yesterday's good data from the real estate market amid optimism associated with the resolution of the budgetary problems in the U.S., have supported the risk appetite of investors and contributed to a significant weakening of the U.S. dollar. Sales of existing homes came at 4.79M vs. 4.75M forecast value.
In our view, if the situation around budget problems in the U.S. will have a positive momentum for the resolution, it is against this background the U.S. dollar will remain under pressure locally.
Today we should pay attention to the results of the meeting of Eurogroup on Greece and the speech of the Fed Ben Bernanke.
Events today:
Moscow time
During the day, the Eurogroup meeting of euro zone
17:30 Canada Wholesale September n / a; 0,3% m / m and 0.5% m / m
17:30 U.S. Building Permits October n / a; 0,87 million, 0.87 million
17:30 U.S. October Construction n / a; 0,85 million, 0.87 million
