French Prime Minister Manuel Valls says that a deal is within reach and that the basics of a deal have already been laid out.  This follows earlier comments about debt restructuring not being taboo, something shared with the US opinion.
EUR/USD reacted positively, reaching a new daily high of 1.1091. So, markets do express some hope. Breakout or fakeout?
He added that it is vital for Greece to stay in the euro-zone and failure to do so would have geopolitical and economical consequences for the world.
But as we have had so many failed breakthroughs in the past, this may be another one. This is especially true if we remember what Italy’s PM said. Renzi said yesterday that a deal is a matter of hours. Too many hours have passed by and there is no deal yet. So is it as sell opportunity?
To pour more cold water, we haven’t heard yet from Germany. In the past, a positive attitude from France was met with yet another hard line from Germany, and the Germans have the last word.
But with pressure mounting for a deal, Germany may eventually accept debt restructuring, as a loss cutting measure.
Earlier, Greece submitted a 3 year ESM bailout plan. Yet details will awaits for tomorrow.
Here is how the swing looks in the chart. Further resistance awaits at 1.1120. 1.1050 is now weak support.
