They are pumping “the very real possibility” that the Greek PSI deal won’t get done and that there will be an uncontrolled default.
My assumption (and it is only an assumption) is that Greece will get enough participation to invoke the collective action clauses that will bind all bondholders to accept the exchange. Uncertainty persists on that point, and will not be clear until late Thursday.
EUR/USD back below 1.3120, now at 1.3117.
