EUR/USD eyes $1.1340
Discussions revolving around Syriza’s wishes for more flexibility and the Troika’s desire to maintain austerity measures are set to continue today in Brussels. The longer this drags on and the closer we get to the end of February deadlines the more likely we are to see EUR/USD react. For the time being though it is remaining remarkably calm as it continues its lateral move hovering around the $1.1340 level.
The standoff that now exists between German finance minister Wolfgang Schaeuble and his Greek counterpart, Yanis Varoufakis, looks to have moved into a game of wait and see as the Greeks weigh up the limited options available to them.
Slightly further afield the situation in Ukraine is showing no sign of deteriorating and with increasing regularity US politicians are openly asking questions about helping to arm the Ukraine government. It is difficult to believe that Vladimir Putin will take this any other way than an act of aggression and an escalation in Ukraine is the last thing the eurozone needs.
Barclays has stated that it sees a Greek exit from the eurozone as more likely than before. This lateral move looks likely to continue but when a clearer sense of where Greece’s future materialises an aggressive move is assured.