Euro remains in the firing line

The single currency remains in focus as Greece headlines continue to fly around.

Greece
Source: Bloomberg

It seems very little progress has been made on the Greece front and that will remain a thorn in investors’ side for a while. The latest reports suggest negotiations between the IMF and Greece have stalled with comments from EU officials suggesting time is running out fast. Comments by EU President Donald Tusk dominated headlines after suggesting a hard-line approach will be taken on Greece. It seems the gap between Greece and Europe is still quite wide and the differences are no closer to being resolved. Despite the negative headlines, EUR/USD wasn’t sold off aggressively and remains in the mid 1.1200 region. This week’s highs of 1.1390 were capped by a downtrend that’s been in place since July last year. There is also a compression triangle forming at the moment and I get the feeling the pair is gearing up for a big move. Apart from industrial production, there isn’t much data on the calendar but Greece headlines always have the potential to result in some volatility. 

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