Finally, Greece has made the official request for a third bailout. There was some confusion about the sending and the details are not known yet. Nevertheless, we can assume it goes along the lines of the letter from Tsipras, and most importantly, it surely included debt restructuring.
This has been a major sticking point and Germany has always opposed it, but there are signs that Germany may eventually accept this political bitter pill. The other option means bigger economic pain. 4 days until the deadline.
Update: Greece asks for 3 year plan that includes reforms – EUR/USD slides from highs
Earlier in the day, Greek PM Tsipras spoke in the European Parliament. He talked about European values, the new program and a need for a compromise. Regarding the guilt for the crisis, he blamed corruption from previous government and also the failure of the bailout programs. He was later criticized and praised from other members.
Donald Tusk said all sides need to make an effort and that the EU Summit on Sunday is a real deadline.
While there are no legal mechanisms for kicking a country out of the euro-zone, the ECB can basically force this by ending ELA. An ECB member, Noyer, already hinted that the finger is on the trigger for Monday.
EUR/USD is relatively calm, trading a bit higher at 1.1035Â after flirting with the 1.1050 level.
More: Short EUR/USD Remains Our Flagship Trade – Here Is Why – Barclays
