As Greece tables its final offer ahead of this weekend’s summit that will end in either a third bailout or the economic catastrophe for the country the markets are optimistic that this time a deal will be done. One of the main hurdles Tsipras now faces is getting his parliament to vote in favour today, before the markets close ahead of the weekend. Risk assets are expected to rally strongly this morning with the FTSE 100 and Dax expected to post triple digit gains. Despite the breakdown in relations between Greece and its creditors and the decreasing appetite for a deal to be made, there are considerable risks of there not being an agreement, not just to Greece and the Eurozone but way beyond and so there are still significant interests in negotiations concluding in a new bailout. That is of course, if the Greek parliament accepts the proposal first. So considerable risks remain ahead of the week end and beyond but for now investors are hopeful a deal can be done.
Economic data will remain a background noise today although Janet Yellen is scheduled to speak later where she is likely to make further reference to the risks of a Grexit, just as there had been some emphasis on this in Wednesday’s FOMC minutes. Whatever happens, it is make or break for Greece this weekend.
Further reading:
EURUSD, USDJPY, GBPUSD – Pivot Points, TA – July 10 2015
Greece tables its final offer
