Epic Tragedy Continues to Play out in Greece

June 29, 2011 - PRLog -- The fate of Greece’s debt will be decided today in the country’s parliament. A vote will be held where a record 78 billion Euros worth of spending cuts are proposed in the budget plan, which will require votes from 155 out of the 300 members of parliament to pass. Such a decision will be difficult to make amid a general strike and the people’s staunch opposition to such measures.  It is also important to note that the budget plan for the next five years will be applied on the basis of these cuts. The government which created the budget did not include any kind of increase on the revenue side by means of tax increases for individuals or businesses. That is why it is somewhat unclear why the Greek population is on strike and refusing to work if this plan doesn’t directly affect their pockets or the pockets of private businesses. It is also surprising that no one has really answered the calls on Greek strikers’ signs pleading for other European citizens to join them.

As Deep Trust Trading analysts expected, the Euro strengthened against the dollar and other currencies. Its rise toward $1.4400 may get a boost and we may see it at $1.4500 by the end of trading today, keeping in mind yesterday’s volatility. Meanwhile, the Swiss franc is attempting to break the key level of 83 in its pairing with the dollar and fix lower with the certainty of establishing yet another record high – it managed to do this yesterday at 0.8275. Deep Trust Trading analysts believe that if Greece’s austerity plan passes, the franc will rise against the dollar and fix for a short time around 84-85.

Data on the Consumer Price Index will also be published today in Canada. The base figure is expected to grow by 1.6% year-on-year and the main figure by 3.3% year-on-year, which is less than what was set in the May estimate for April. After publications of much lower figures (the base figure was expected to grow by 1.7% and the main by 3.5%), expectations that the Bank of Canada would tighten monetary policy were didn’t materialize and the Loonie underwent a correction which continues even today. It is difficult to predict the growth of the Canadian dollar, but the USD/CAD technical picture looks this way. Yesterday, the Canadian dollar strove to hit 98, but it now appears that this attempt has died out.

Deep Trust Trading Analytical Department
http://deeptrusttrading.com/

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