There are talks that Greece may exit from the Eurozone influencing nearly all assets. As a result of such talks, the euro is falling, the stock indices are on decrease as well, the oil and gold prices are declining too.
Investors are buying into the US dollar which has lately become a safe-heaven currency. So, the gold price moved closer to its 10-month low of 1554 US dollars per troy ounce.
The point is that market participants have been uneasy about Greece turmoil. No coalition government has been formed in the country yet, so Greece will have to hold new elections next month.
Meanwhile, in accordance with the anti-crisis plan, Greece must somehow approve 11 billion euros in additional budget cuts by the end of June in order to get another aid package from the EU and IMF.
It is highly probable that Greece will fail to meet its financial obligations, consequently, it will not be subject to aid and, eventually, it will default and leave the Euro Area. The Sunday Times wrote that Greece can quit the Eurozone in eight weeks.
However, yesterday Eurogroup head Jean-Claude Juncker said that the currency bloc is still determined to help Greece out. The Eurogroup carries on with the fulfillment of the obligations. At its last meeting, the European Financial Stability Facility unblocked 5.2 bln euro, the first part of the remaining bailout equal to 39.4 bln euro.
Today’s trading session will show if this statement brought any relief to investors.
