Greek problem heads for a showdown

•     Greek problem heads for a showdown

–    Both sides harden their stance:   Greece refused to continue with the conditions of its bailout, while the EU refuses to discuss more money or a debt write-off unless Greece sticks to its previous commitments

–    The real deadline may be the Eurogroup meeting next Tuesday. Greece has to submit a bail-out extension request by then. If not, then there is no possibility for more money.

–    EUR/USD has been surprisingly steady, but it’s likely to start falling as tension rises

•     Fed talk remains hawkish

–    Richmond Fed President says Fed should raise rates in June

–    SF Fed President says economic conditions for raising rates are “closer and closer”

–    Fed Funds rate expectations rise further, supporting USD

•     Oil prices fall, pressuring commodity currencies

–    International Energy Agency says oil glut to remain until midyear

–    CAD particularly weak as Gov. Poloz says economy is deteriorating

•     Today:

–    Eurozone:  Eurogroup meeting of finance ministers meets to discuss Greece

–    Norway: Q4 GDP expected to rise