The Euro opened the week stronger within an overall risk-off context climbing from an opening level of 1.0975 to surpass 1.1100 despite better than expected Durable Goods Orders out of the US. EURUSD was also underpinned by a strong German IFO survey for July and profit taking ahead of Wednesday’s Fed policy decision.
Well things have slowed down a bit in the currency markets this week with the Greek situation in a temporary dormancy. Greek banks reopened on Monday after receiving EUR 900m in ELA last week.
Another exciting week in the foreign exchange markets comes to an end today with volatility stemming from a variety of sources including congressional testimony from US Fed Chair Janet Yellen, hawkish comments from the Bank of England, an ECB monetary policy statement, and a surprise rate cut from the Bank of Canada. Oh, and yes, we have a deal in the making between Greece and its creditors! Applause. EU finance ministers met on Saturday to discuss a package of reforms provided to them by Greece, along with a EUR 60 billion/3 year bailout proposal.
While nothing has ‘really’ changed with the Greek situation, plenty has happened since last Friday’s writing and appears to be coming ever closer to some sort of resolution.
If you happen to be growing tired of ‘Grease’ lyrical references, imagine how tired the market must be of the back and forth between the Greeks and their creditors. Well, the Greek debt situation appears to be coming to a head this weekend and the ECB has indeed grown tired of Greek recalcitrance.