Euro Group meeting preview

Euro group finance ministers are meeting today to discuss over Greece's debt crisis and what might be the path ahead to resolve it.

• No much is expected today from the meeting and finance ministers have downplayed any resolution that might arrive from today's meeting. Nevertheless, today's meeting update remains crucial ti judge what might be the path ahead for Greece.

• While Greek finance ministry sounded optimistic, expecting positive outcome from the meeting, German finance minister Wolfgag Schäuble said he is not expecting much from the meeting as two side still remains far enough over the reform plans.

• Euro group creditors are asking for deeper pension cuts and reforms in labor laws that would lower the minimum wages and would make it easy for private firms to shed jobs.

Today's meeting is ever more crucial as ECB has announced that will take decisions on additional haircut on Greek collateral, which would further reduce Greece's ability to fund government through short term treasury sales.

Today's meeting is also first of its kind since International Monetary Fund (IMF) has warned Euro zone official creditors that Greece stands too far away from the projected path of its bailout program and debt has not fallen as rapidly as originally anticipated. IMF declared that Greece might lose vital credit line from IMF, unless debt is significantly reduced through official sector write-offs. Greece is due to payback IMF € 0.77 billion tomorrow.

Both of the above have potential to cause havoc for Euro zone assets including Euro, which as of now trading at 1.119 against dollar.