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The latest commentary out of Greece suggests the country’s leadership is looking to take an aggressive stance. Prime Minister Alexis Tsipras said he won’t be going for an extension of Greece’s current bailout while speaking before parliament on Sunday. Instead Mr Tsipras will be looking for a bridge deal until June while he renegotiates a new bailout plan. Mr Tsipras brings some valid points to the table as austerity will never really see the country get out of the hole it is in.
However, the country is at a real risk of running out of cash or being kicked out of the union. It was also interesting to hear the Bank of Greece Governor saying the country is preparing an exit plan. This has been enough to rock the euro this morning.
Headline risk will drive the currency this week. January lows for the pair were around $1.1000 and any further chaos could see this retested. Traders looking for fresh shorts in the currency pair could consider selling on a break below $1.1300 and riding the momentum from there.