It promises to be a monumental week for the EUR, with noise in the interbank market getting louder and louder that a return to the Drachma is imminent. The reported row on Friday between the IMF and Greece over the coupon on replacement bonds has led to the increased speculation. Greece has over EUR15 billion in coupon redemptions due in March, and time is running out to get these payments in place.
On the EUR/USD order front, there’s talk of barriers at 1.2600, 1.2550 and a big one at 1.2500 and I’m sure we’ll hear more of these in coming days (or minutes
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