ECB vice-president Stark says the Euro zone will not break up.
There. I think every member of the ECB has now answered that there will be no break-up.
More important than a break up is the question as to what will happen if Greece is downgraded to the point where its bonds will no longer be accepted as collateral at the ECB. That would likely lead to a funding crisis among the Greek banks which could spill over to the broader European banking sector, and beyond. That’s what concerns the market more than risk of default or Greece leaving the euro zone.
EUR/USD trades now in the 1.4380 area after finding support ahead of 1.4350.
