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A Crucial Week for the Greek Economy’s Future

Last Friday, as the negotiations between Greece and its creditors resumed, the euro closed lower versus the U.S. dollar, and so did the greenback after the FED reported that the increase in rates will be a gradual procedure.

The EUR/USD after having dropped earlier as low as 1.1293, traded at 1.1352 prior to ending Friday’s session. The pair recorded a 1.15% gain during the week.
The U.S. currency, the dollar, pushed investors’ expectations on the initial rates appreciation, backwards, as the currency was under strong pressures after Wednesday’s outcome as the Federal Reserve lowered its growth predictions on interest rates.

Janet Yellen, Federal Reserve’s Chair, recognized that the U.S. economy, after the first quarter, expanded fairly, and said that the central bank wants to see, prior to the rising of rates, a more constant growth.

Furthermore, the euro is still under strong downside pressures, as Greece steadily approaches the time frame, by the end of June, where it has to repay the International Monetary Fund (IMF). In case of a default, Greece could exit the euro zone.

Moreover, for this week, and particularly today, the euro zone ministers will hold a meeting in Brussels to talk about Greece’s financial crisis. In addition, on Tuesday, the euro zone will release its growth data for the private sector, whilst during the week investors will focus on the housing and factory sectors in the U.S.

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