The dollar index, DXY, against a basket of major currencies is strongly up. Euro/USD traded Friday on 1.2831, the lowest level seen in months. The trend towards a weaker Euro is most likely to continue this week with USD/JPY moving towards an earlier peak on 103 yen against the dollar. Commodities listed in USD are falling with the strength of the dollar. Precious metals are again hard hit with Gold falling 2,1 %.
EU finance ministers are meeting in Brussels today to decide on releasing a third bailout and rescue package on 8,1 billion Euro for Greece. The troika of lenders; The European Central Bank (ECB), EU-commission and International Monetary Fund, IMF, have expressed strong dissatisfaction with the slow implementation of the 12 500 reduction of civil servants. The troika has been under fire for the austerity measure undertaken against Greece. An IMF representative admitted lately that their policies had aggravated the problems in Greek economy.
The EU Commission has flatly rejected these claims and the Finance commissioner for EU, Olli Rehn, has before the meeting today reiterated that Greece has to intensify its reform commitment. The Samaras three party government consisting of the EK right party, social democratic PASOK and left of center party, has steadily lost authority threatening Greece with new elections and an unpredictable outcome most likely strengthening the socialist left and the far right Golden Dawn party. Both parties reject continued austerity measures.
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