- Die Welt: ECB, France oppose Greek debt extension; EU/IMF/Germany favor debt extension; Germany also favors voluntary debt restructuring
- Germany denies knowledge of any restructuring plan
- ECB’s Stark: Restructuring would be a catastrophe; ECB signaled gradual rate rise
- Eurogroup’s Juncker: Clear Greece cannot return to markets in 2012
- US CPI rises 0.4 in April, core up 0.2%: as expected
- University of Michigan consumer sentiment edges up to 72.4 in May from 70.0 in April
EUR/USD slid throughout the US session falling from early highs of 1.4307 to lows of 1.4065 on renewed fears of a Greek debt restructuring. Die Welt ran an article highlighting a rift between France and the ECB in one camp opposing all manner of debt rescheduling/restructuring and the EU/IMF and Germany in another camp/ The EU and IMF want a rescheduling of the debt while Germany wants a voluntary restructuring, the article says. The German government denied, of course.
The longer the uncertainty of the future of Greece, the more likely EUR/USD is to be sold on rallies.