IMF Plays with Matches, Greece gets Burned

​​When the European phase of the debt crisis erupted, involving the IMF was controversial. However, its money, expertise, and credibility carried the day. It became integral to the aid efforts within the monetary union. It has reportedly signaled it does not want to participate in additional efforts to assist Greece. There have been several critical errors in dealing with Greece, and these errors are partly of the IMF's doing. Many officials have expressed concern about the moral hazards that distort the incentive structure for Greece, but what of the moral hazards for the official creditors, like the IMF?

Euro stabilizing at 1.1150

On Monday the euro/dollar closed down but didn’t quite reach the forecasted target of 1.1070. The fall of the euro stopped around 1.1130. The euro was weak against the dollar and pound because of problems with Greece. The European Commission convened but came to no positive conclusions about Greece. There is some progress, but the negotiation process between Greece and its creditors is slow.

Pound/dollar is on the way to 1.5290

​​Attempt of bears to return the control over pound/dollar has come to grief at the 51-st figure where pair have redeemed, and, having brokethrough resistance in area of 52-nd figure, has risen up to a level of 1.5261. ​Thus, in short-term prospect testing possible the resistance in the area 1.5290-1.5300, marked by us as the nearest target of bulls.

Oil fell in price

​​Oil quotes, who are supported by events in Yemen, yesterday retained a positive attitude. The June contract for WTI oil was not leaving attempts to breakthrough the resistance at 58.00 dollars per barrel, but they were unsuccessful. In the Asian session a support in the area of 56.55 was brokenthrough, and bears have tested he mark at 56.06 dollars per barrel.

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Fundamental

Euro stabilizing at 1.1150

On Monday the euro/dollar closed down but didn’t quite reach the forecasted target of 1.1070. The fall of the euro stopped around 1.1130. The euro was weak against the dollar and pound because of...