With the recent development in Greece Euro situation many are asking this question: Will Greece stay in EU or not? In this article you will find our thoughts about the Greece situation and how we are thinking on to set up a trading plan for that.
Greece Euro case: good or bad new development?
On friday 24th of April Jeroen Dijselbloem said in the Greece Euro situation that there will be no funding for Greece until they have met requirements that’s been set by the Eu. Yesterday on the 27th April the prime minister of Greece Tsipras announced that the negotiation team has been reformed. Greece financial minister Varoufakis got replaced by Tsakalotos.
The markets reacted positive on those development in the Greece Euro case. We have to mention that the markets were already in a good mood because of the good earnings from companies that publicised their first quarter results.
Today the 28th of April 2015 the Greece prime minister Tsipras announced that if the bailout terms are not fair in Greece Eu situation, then the prime minister have to held a referendum. This way the citizens of Greece can choose if they want to support the EU bail out deal or not. (sources : Financial Times)
What do we at 101trading.co.uk expect?
Its difficult to say of what to expect. In the Greece Euro case we think that both parties will strike some kind of a deal. We have noticed that Greece have changed their attitude a little bit towards the EU since the Greece election. According to the dutch news paper “de volkskrant” Tsipras is willing to break a few of his election promises. (source: volkskrant)
We believe that EU won’t let a Grexit happend because of the following reasons:
- If a greeks exit happens , the country will go broke and there is no view on how Greece will payback the loan to the EU and IMF.
- Eu doesn’t want to drive Greece into the hands of Putin
- Its doesn’t want to endanger the euro currency
Now its up to EU to loose up a little bit and offer Greece a better deal.