Whether the debate over austerity terms between the Eurozone and Greece is resolved or evolves into a full-blown crisis, the Euro will feel the impact. Yet, the impact won't end there. The Dollar is positioned such that it will directly feel the effects of the off-shore risk. From a traditional fundamental perspective, the Greenback is a safe haven currency - a feature whose value will rise or fall depending on the progress made through Friday. Furthermore, from a purely capital flow perspective, EURUSD is the world's most liquid currency pair; and a big move (again relief or collapse) will pull the Dollar more broadly with it. And, then there is the technical perspective with USDollar and many of the USD-based majors in tight consolidation and pining for a breakout.
