Greek PM Papandreou is on the wires from London saying “our problem is our responsibility” but he also notes that contagion fear makes problems for other countries. It is a fallacy to say the Greeks are reckless, he says.
Contagion fears create higher rates for other EU countries as well as creating problems for the currency.
Ultimately, Greece would like to be able to borrow at the same rate as other Eurozone countries…
EUR/USD has come under renewed pressure after the comments, trading now at 1.3490. A break targets 1.3460.