Not that it is getting too badly hit price wise (though there is some real-money selling) but the inevitable just keeps getting postponed. They kick the can down the road a few weeks but never solve the problem once and for all.
The market wants little more than clarity, so it can decided what to do and when to do. All the EU does is further the ball a couple of yard but never gets us to the end zone…A maddening process.
EUR/USD has been unsuccessful in attempts to fill the gap from 1.3565 down to 1.3500 so far today.
My one take-away from today’s price action is that while we’ve had a roughly 100 bp slide in Greek bond spreads since last Thursday, they are still extremely wide, higher than they were after the March 25 announcement of the original back stop plan. That show’s the market is not exactly scared of Mr. Papandreou’s gun on the table.
