Forex Flash: Greece to finally implement change? – UBS

FXstreet.com (Barcelona) - Greece's Prime Minister Samaras announced he will submit a ¬11.5B austerity plan within weeks and added that he personally guarantees repayment of the rescue funds. After a meeting with Samaras, Eurogroup head Juncker said he is convinced that the Greek government will take all the necessary measures, but added that any extension of the deadline to meet deficit targets is contingent on the Troika report, which is not due until late September.

Juncker also noted that no decision on further Greek aid could be taken before October. German Chancellor Merkel, who is scheduled to meet Samaras later today said there "will not be any decisions" made in the meeting.

According to Gareth Berry, a Research Analyst at UBS, "The Eurozone debt crisis remains a focal point, with the EURUSD around 10 big figures lower, and Spanish 10y bond yields 65 percentage points higher, than was the case in May. Moreover, we remain confident that the SNB will maintain the 1.2000 floor in EURCHF for the foreseeable future."