MORNING BRIEFING: Europe split on financial aid to Greece.

[RTFX-Trading]

MORNING BRIEFING: Europe split on financial aid to Greece.

[B][I][U]What’s new:[/U][/I][/B]
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[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CAL220310.gif[/IMG]

[B][I][U]Overnight Rates and Indices: [/U][/I][/B]
EURUSD: 1.3533 – 1.3498.
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EURJPY: 122.57 – 122.17.
USDJPY: 90.78 – 90.42.
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Gold: $1’107
Crude Oil: $80.06

[B][I][U]Comments: [/U][/I][/B]

European leaders are divided over aid to Greece. German Chancellor Angela Merkel has urged Athens to solve its debt problems alone, while Italian PM Berlusconi is strongly backing EU support. The 16 nation Euro-zone is divided over whether or not to provide financial aid to Greece and how. Greece continues to struggle with soaring debt and deficits, which has driven the currency bloc into the deepest crisis of its 11 year existence.

On Friday, European Commission President Jose Manuel Barroso urged EU member states to agree a standby aid package for Greece after Athens said it could turn to the IMF for help. However, shortly after Barroso’s comments, the German government issued a statement saying Merkel spoke to Greek Prime Minister Papandreou, and he told her Greece does not need financial help.

Merkel's stance pits her against Brussels and major European partners, who favor strong action to end a speculative assault on Greek assets that has made it twice as expensive for Greece to borrow as for Germany.

Meanwhile, from China, Commerce Minister Chen Deming said “Beijing will retaliate if the United States declares China a currency manipulator and imposes trade sanctions”. China continues to accuse Washington of politicizing the issue. In the United States, political pressure is growing on Washington to declare China a currency manipulator, with some senators threatening to impose duties on Chinese products if Beijing insists on not allowing the Yuan to rise. The head of the Asian Development Bank also joined the chorus of calls to China to drop the peg of 6.83 Yuan to the Dollar.

Good Day.

Emman Xuereb
Trading Desk
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