Negative comments from S&P on the outlook for Spain helped prompt a dip to the 1.3635 level but there was no follow-through and EUR/US is grinding higher once again. Most sane people have retreated to the sidelines allowing the aglos to push the market to and fro with impunity.
Just crossing the wires, German Chancellor Merkel says altering the schedule for Greek debt repayment can be considered in the context of a comprehensive euro package (expected late next month).
Earlier, Merkel’s coalition once again rejected the idea of ESFS funds being used to buy back debt….
After meeting with Merkel, Greek PM Papandreou says that Greece will repay all its Debts and will not be a burden to German taxpayers. All our efforts have been toward avoiding a debt restructuring, he said.