- Greece may need another EUR 32.6 bln by 2016. Troika recommends two-year extension to reach fiscal targets, very large risks
- Spanish FinMin calls fiscal plan cold and coherent; economy to contract 1.5% this year
- Italian Dept head: Spain won’t seek bailout until issue if ESM preferred creditor status clarified; Italy does not need a bailout
- Austrian FinMin: Greek decision not likely today, No appetite from euro area countries to extend more money to Greece
- Merkel: Germany not unscathed by euro area recession; Not bothered by Nazi slurs.
- ECB to loosen collateral rules for Greek banks so Greek banks can buy government bills to keep government from defaulting on Friday’s bond redemption: Die Welt
- Monti: No need to urgently introduce eurobonds
Very quiet markets during the US Veterans Day holiday. Merkel’s comments on Germany being hurt by a euro zone recession helped ease EUR/USD with already tight ranges. Also undermining the single currency that the ECB has rigged its collateral framework to allow Greek banks to keep funding Greece’s short-term funding need via the bill market also weighed in the single currency.
Traders continue to expect tight ranges in the near-term with 1.2680/1.2750 expected to contain in the near-term.
We await the end of the Eurogroup meeting at any time. No Greek decision is expected amid talk that finance ministers may meet on Greece again later this week.
