European Markets started the week in a high note. The unemployment rate remained at 11.4%. While the news isn’t positive, it will reaffirms that the situation hasn’t worsened.
Along with the unemployment data, Investor digested earlier that the European Union manufacturing remained stable.
Both news reinforce the view that the Euro Zone will survive the financial crisis, and by consequence the common currency will get stronger. Over night the Eur/Usd pair rose 89 pips.
Greece is also in the spotlight as Athens submits its 2013 draft budget to Parliament. Greece needs to convince the troika to agreed with the spending cuts and tax hikes for 2013-14. Other wise, Greece will not be able to receive any more financial assistance. And with not bailout the chance or default are imminent.
With all the effort that the European leaders are putting into keeping Greece in the union, it is unlikely that Greece will default. Perhaps, and perhaps best case scenario, it will take longer to solve Greece financial crisis.