Euro Tumbles as EU Split on IMF Role for Greece
Posted by cvbasheer on March 18, 2010
Euro is sold off sharply and recent developments suggest that European Union is split over who should provide the financial aids to Greece. German Chancellor Merkel’s chief finance spokesman Meister said that “nobody apart from the IMF” has the instruments to push for Greece to restore its “capital-markets access” and attempting a Greek rescue without the IMF “would be a very daring experiment.” The comments signaled a rift with Merkel and European leaders ECB Trichet, Luxembourg’s Jean-Claude Juncker and France’s Sarkozy. Also, it’s believed there are now at least three other Eurozone nations that are open to the idea of calling the IMF if needed, including Finland, the Netherlands and Italy. EUR/USD is sharply below yesterday;s high of 1.3817 and is trading at around 1.3680 region while EUR/JPY failed 125 level and is back at 123.30. EUR/CHF also extended recent down trend and dived to 1.4460 level.