According to a recent report in a UK newspaper, the EU authorities and the European Central Bank don’t express the same view point on how to solve the debt crisis in Greece. EU considers a soft restructuring and is in favor of extending the maturities of Greek debts. However, the ECB considers it as unworkable. This is because ECB is worried about the debt situation and thinks that it may erode fragile support for other peripheral nations, including Spain, Irish, Greek and Portuguese. Bond yields continue to be on high level.
Besides the Euro being choppy, investors cannot take a firm decision about the Dollar either. The greenback recovered to a particular extent, after FOMC was released. FOMC members would like to use interest rates for monetary policy...... Continued
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