FX.co ★ Fundamental Analysis for March 7, 2012

Amid a complex picture of solving the problem of Greek debt the European markets were functioning with modest gains on Wednesday.
The deadline for creditors to join proposed by the Greeks bond swap, a total of 130 billion euros is due on Thursday afternoon. Those who do not accept it, can fall into a wait of several years or which Greece claims must accept the swap anyway, if the majority accepts it.
In light of what happened in other places such as Argentina, that also made payments of debts, but not immediately, it is highly advisable to adhere to these operations. In the case of the South American country, many hedge funds do not enter the trade, and for several years dealing with the American legal system tried to collect all the capital which is almost never achieved.
Clear that Greece has the backing of the European Union on the one hand, and it creates pressure on the continent. To take an extreme example, if no one accepts the exchange, Greece will immediately get into default, and this can lead to unpleasant consequences in other countries of the region. Of course this will not happen, and there are several banks, especially principal ones, who have accepted the terms of trade.
As for the private sector, it is an invitation to creditors, a step prior to bankruptcy if it is not acceptable.
The euro, in this context, lateralized its rate versus the dollar while waiting for some definition coming soon. But despite the news that the force was to be good to avoid a big problem, it seems that the common currency can raise its head far above where it is. In other words, in the near future, the euro has much more to lose than to win against other major currencies.
As for the USA, here we are waiting for 8:15 eastern number of jobs in February according to ADP. In this regard, speaking earlier forecast of 205,000 jobs last month, compared with 170,000 in January. Clearly, both figures are being revised.