EU Juncker says pressure on Europe if IMF does not pay next tranche of aid to Greece.
- If the Europeans have to acknowledge that the disbursement from the IMF on 29 June cannot be operationally implemented then the expectation of the IMF is that the Europeans would step in for the IMF and take upon themselves the IMF's portion of the financing, Jean-Claude Juncker said at a conference
- That won't work because in certain parliaments -- Germany, Finland and the Netherlands and others too -- there is no preparedness to do so, he said
EUR/USD has fallen 100pips from its highs currently trading at 1.41 off of Juncker's comments.
Twenty minutes later ECB's Gonzalo-Paramo made the following comments:
- ECB's Gonzalo-Paramo expects Greece to qualify for the next tranche of the EU/IMF bailout loan,
- If they (Greece) don't meet the (IMF) requirement then there will be some conditionality. But I don't even think about any possibility of Greece not meeting the conditions set by the IMF, Gonzalez-Paramo told reporters when asked whether there was a chance Greece would not meet the conditions for next tranche of rescue money.
Talk about EU and ECB sending mixed messages. Markets don't like confusion, hence the 100 pip sell off in the EUR/USD.