Greece day of reckoning

22 June, 2015

The ECB stepped in once again to help prop up Greek banks last Friday with an exceptional round of Emergency Liquidity Assistance funding as a record amount of euros were withdrawn from the Greek banking system. This may not however be enough to stem the exodus as today’s crunch summit gets underway to try and end the impasse. It is estimated that not much over €100 billion is deposited in Greek banks, well under half of what they were at the height of the banking crisis seven years ago and without a deal today we can expect that to fall below €100 billion rapidly, as it will call into question whether the ECB is willing to continue to assist with further ELA. The ECB has kept the ELA for Greece for as long as negotiations have been on going, but no deal today could mark the beginning of the end and the imposition of capital controls.

One thing you cannot fault is the political resolve to see a deal done, without which Greece would have been given its marching orders long ago. This optimism is giving investors an excuse to buy risk assets this morning with a strong bounce in European equities, in particular the German Dax up over 2.5%, meanwhile the euro is holding up well with EURUSD at 1.1385.


Source link  
All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

  


Share: